Trump’s announcement of a new 20% tariff on the European Union drew a sharp rebuke from European Commission President Ursula von der Leyen, who said it was a “major blow to the world economy.”
“The consequences will be dire for millions of people around the globe,” von der Leyen said. Groceries, transport and medicines will cost more, she said while visiting Uzbekistan. “And this is hurting, in particular, the most vulnerable citizens.”
Von der Leyen held off, however, from announcing new retaliatory measures and underlined that the EU was ready to negotiate with the U.S.
Analysts say there’s little to be gained from an all-out trade war since higher tariffs can lower growth and raise inflation.
“On the other hand, Trump seems to understand only the language of force, and this indicates the need for a strong and immediate response,” said Matteo Villa, a senior analyst at Italy’s Institute for International Political Studies.
“Probably the hope, in Brussels, is that the response will be strong enough to induce Trump to negotiate and, soon, to backtrack.”
▶ Read more about the global response to the tariffs
