European Commission president calls Trump’s tariffs ‘a major blow’ to global economy

ISTANBUL

European Commission President Ursula von der Leyen said early Thursday that US President Donald Trump's newly announced reciprocal tariffs on nations worldwide are a "major blow" to the global economy, warning it will "massively suffer."

"President Trump's announcement of universal tariffs on the whole world, including the European Union, is a major blow to the world economy. I deeply regret this choice," Von der Leyen said at a news conference.

Her remarks came after Trump signed an executive order Wednesday delivering on his long-promised vow to impose reciprocal tariffs on nations worldwide in a move that has sent markets sharply lower for months.

"The global economy will massively suffer. Uncertainty will spiral and trigger the rise of further protectionism. The consequences will be dire for millions of people around the globe, also for the most vulnerable countries, which are now subject to some of the highest US tariffs, the opposite of what we want to achieve," she added.

She warned that inflation will increase, affecting the most vulnerable citizens, while businesses, both large and small, will encounter greater uncertainty, disrupted supply chains, excessive bureaucracy and higher costs in their dealings with the US.

“What is more, there seems to be no order in the disorder, no clear path to the complexity and chaos that is being created as all US trading partners are hit,” she added.

"I agree with President Trump that others are taking unfair advantage of the current rules," said Von der Leyen, expressing her readiness to support any effort to make the world trading system "fit for the realities of the global economy."

“But I also want to be clear: Reaching for tariffs as your first and last tool will not fix it,” she said.

“That is why, from the outset, we have always been ready to negotiate with the US, to remove any remaining barriers to Transatlantic trade.

“If negotiations fail, we will also be watching closely what indirect effects these tariffs could have because we cannot absorb global overcapacity, nor will we accept dumping on our market,” she added.

"At the same time, we are prepared to respond. We are already finalizing a first package of countermeasures in response to tariffs on steel,” she said.

Noting that EU Trade Commissioner Maros Sefcovic has been continuously collaborating with his US counterparts, Von der Leyen said the bloc will work towards “reducing barriers, not raising them.”

Von der Leyen said the EU will always advocate for and protect its interests and values, adding it is not too late to resolve concerns through dialogue and negotiations.