European Commission President Ursula von der Leyen outlined the three core pillars of Europe’s strategy in response to ongoing US tariffs during her address to the European Parliament in Strasbourg. The first pillar, she stated, is diversification. Von der Leyen highlighted that the EU already has trade agreements in place with 76 countries and is actively expanding its trade network. Recent agreements with Switzerland, Mexico, and the Mercosur bloc have bolstered this effort, with an agreement with India expected by the end of the year. Ongoing negotiations with Indonesia and Thailand further contribute to these efforts.
The second pillar of the strategy focuses on freeing the single market from barriers. Von der Leyen pointed out that internal market obstacles within the EU are equivalent to tariffs affecting 45% of production and 110% of services, according to the IMF. She has tasked European Commissioner for Prosperity and Industrial Strategy, Stefan Séjourne, with proposing measures to eliminate existing barriers and prevent new ones from emerging.
Finally, von der Leyen reminded the European Parliament that it was not the EU that initiated the conflict with the United States, underscoring Europe’s commitment to a cooperative and open approach. She also noted that this week marks the first-ever EU-Central Asia summit in Uzbekistan, emphasizing Europe’s continued efforts to expand its global relationships amidst trade challenges.