US vs EU: ‘We will take strong retaliatory action against US President Donald Trump’s tariff announcement
EU: The European Union has said that it will take strong and swift action against tariffs imposed by US President Trump on steel and aluminium as these policies hinder free and fair trade. The annual trade size between the two sides is around $1.5 trillion, with the EU having a surplus in goods trade and a deficit in services trade.
The European Union’s (EU) executive branch said on Friday it would respond “strongly and swiftly” to US President Donald Trump’s tariffs on steel and aluminium. The European Commission said Trump’s proposed reciprocal trade policy was going in the wrong direction.
The Commission said, the EU will take strict and prompt action against policies that create barriers to free and fair trade without justifiable reason, including when tariffs are used to challenge legitimate and non-discriminatory policies. The Commission also said, the EU will always protect European businesses, workers and consumers from unnecessary tariffs.
The Commission said, the EU will take strict and prompt action against policies that create barriers to free and fair trade without any justifiable reason, including when tariffs are used to challenge legitimate and non-discriminatory policies. The Commission also said, the EU will always protect European businesses, workers and consumers from unnecessary tariffs.
The EU talks on trade matters as a group of 27 countries. The EU said that the European Union imposes the lowest tariffs in the world and there is no justification for the US to increase tariffs on imports of its goods.
The Commission said, these tariffs are taxes. By imposing tariffs, the US is taxing its citizens, increasing the cost of business, slowing growth and increasing inflation. These tariffs increase economic uncertainty and impede efficiency and integration in global markets. Earlier this week, the Commission had said that steps would be taken in response to US tariffs on steel and aluminum.
Trump had earlier imposed tariffs on steel and aluminum from the EU
It is not yet clear what steps the European Union will take to respond to the US tariffs. Trump had imposed similar tariffs on EU steel and aluminum during his first term, which caused resentment in the EU and its other partner countries. After this, the EU responded by increasing tariffs on products such as American motorcycles, borax, peanut butter and jeans.
How much trade is there between the US and the EU
The European Union says that the annual trade size between the two sides is around $1.5 trillion, which is about 30 percent of the total world trade. Although the EU has a substantial export surplus in goods trade, it believes that it is balanced to some extent by the surplus in US service trade.
The EU says trade in goods will reach $878 billion (851 billion euros) in 2023, giving the EU a trade surplus of $161 billion (156 billion euros). At the same time, service trade was $710 billion (688 billion euros), in which the EU suffered a trade deficit of $107 billion (104 billion euros).
