KEY POINTS
- EU pledges an immediate and proportionate response to the US tariffs
- Trump announced plans for a 25% tariff on EU imports
- European leaders reject Trump’s claim about the EU
- Spanish PM says the EU will defend its economic interests
- German leader-in-waiting Friedrich Merz warns of reduced US commitment to European security.
- Rubio calls on Europe to invest more in its military.
BRUSSELS: The European Union has vowed an immediate and proportionate response if the United States moves ahead with a proposed 25 percent tariff on imports from the European Union (EU), escalating trade tensions between Washington and Brussels.
US President Donald Trump, speaking at a cabinet meeting on Wednesday, warned that his administration had decided to impose a 25 percent tariff on EU goods, including cars.
Trump claimed the EU had “really taken advantage of us” and accused the bloc of unfair trade practices.
In response, European Commission spokesperson Olof Gill said that the EU would take swift action against any unjustified trade restrictions.
“The EU will react firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies,” Gill said in a statement.
He further emphasised that the EU remains committed to protecting European businesses, workers, and consumers from what it considers unwarranted tariffs.
Spanish Prime Minister Pedro Sanchez said Thursday that if the US went ahead with 25 percent tariffs on goods imported from the EU, the bloc’s response would be “proportionate”.
“We are going to defend our interests against those who want to attack European economies with tariffs that are completely unjustified and that also covertly threaten our economic sovereignty,” Sanchez said during a speech in the northern Spanish town of Zamudio.
“We in the European Union … are going to adopt measures in response that are proportionate to that challenge,” he added.
Trump escalates trade disputes
Trump has long criticised the EU’s trade policies, often portraying them as detrimental to the US economy.
ALSO READ: Trump Announces 25% Tariff on European Union Imports
During his remarks on Wednesday, he went further, alleging that the EU was formed with the intention of disadvantaging the United States.
“Look, let’s be honest, the European Union was formed in order to screw the United States,” Trump declared. “That’s the purpose of it, and they’ve done a good job of it. But now I’m president.”
His comments drew sharp criticism from European officials and observers. Former French ambassador to the US, Gérard Araud, responded on social media platform X, stating: “Trump hates the EU. He doesn’t know exactly what it is but he hates it.”
Carl Bildt, Sweden’s former prime minister, dismissed Trump’s remarks as historically inaccurate, writing: “It was actually set up to prevent war on the European continent.”
Trade and security concerns
The renewed trade dispute comes amid broader transatlantic tensions, particularly concerning Trump’s stance on NATO and US commitments to European security.
The US president has frequently questioned the alliance’s relevance and suggested that European countries should take greater responsibility for their own defence.
German Chancellor-in-waiting Friedrich Merz recently warned that Europe must prepare for a future where the US plays a diminished role in its security.
“Americans, or at least this portion of the Americans … care very little about the fate of Europe,” Merz said in an interview on Monday.
He added that he was uncertain whether NATO would exist in its current form by mid-2025 or whether the EU would need to establish an independent defence capability “much more quickly.”
US Secretary of State Marco Rubio sought to downplay fears over NATO’s future, while urging European governments to increase their military spending.
“My reaction is NATO is not in jeopardy. The only thing that puts NATO in jeopardy is the fact that we have NATO allies who barely have militaries or whose militaries are not very capable because they’ve spent 40 years not spending any money on it,” Rubio said in an interview with Fox News.
“These are rich countries, especially in Western Europe,” he added. “They have plenty of money. They should be investing that in their national security, and they’re not.”
Trade war fears loom
Trump’s latest tariff threats follow his recent trade actions against other key US partners. On 1 February, he imposed an additional 25 percent tariff on imports from Canada and Mexico, though this was temporarily suspended for 30 days.
On 9 February, he announced a 25 per cent tariff on steel and aluminium imports and signalled a “comprehensive plan” to tackle what he termed “non-reciprocal trading arrangements.”
The EU is a key target of these measures, with Trump citing the bloc’s 10 percent tariff on imported US cars and its ban on US shellfish imports as examples of unfair trade practices.
Despite strong rhetoric from both sides, EU leaders have signalled a preference for resolving disputes through dialogue rather than escalating into a full-scale trade war.
“We’re ready to partner if you play by the rules,” the European Commission spokesperson said. “But we will also protect our consumers and businesses at every turn. They expect no less from us.”
