**US** President Donald Trump's decision to impose a 20% tariff on goods from the European Union has sparked strong reactions from global leaders, with European Commission President Ursula **von der Leyen** calling it a significant setback for the world economy. She warned of severe consequences, particularly for vulnerable populations, as the new **tariffs** would increase costs for essential goods such as food, transportation, and medicine. While acknowledging flaws in the global trading system, **von der Leyen** stressed that the **EU** is prepared to negotiate but will also respond with countermeasures if necessary.
Trump justified the **tariffs**, which range between 10% and 49% and which he refers to as "reciprocal **tariffs**," as a way to correct what he claims has been an unfair trade dynamic disadvantaging the United States for decades. Declaring that “taxpayers have been ripped off for more than 50 years,” he framed the move as an essential step to restoring economic balance, predicting that factories and jobs would return to the country. He also positioned the issue as one of national security, arguing that existing trade practices threatened “our very way of life.”
The announcement sent shockwaves through financial markets. U.S. stock futures fell as much as 3% early Thursday, with Tokyo’s stock exchange leading losses in Asia. Oil prices dropped more than per barrel, and Bitcoin lost 4.4% of its value as investors reacted to the news.
Governments around the world responded with varying degrees of concern and opposition. In the United Kingdom, Business Secretary Jonathan Reynolds reaffirmed the close ties between the U.S. and Britain while expressing hope for a trade deal to mitigate the impact of the 10% tariff on British exports. Italy’s Prime Minister Giorgia Meloni criticized the **EU** **tariffs** as counterproductive, warning that they could weaken the West against other global economic powers. Brazil’s government announced it was considering filing a complaint with the World Trade Organization, and its Congress passed a bill allowing for retaliation against countries imposing **tariffs** on Brazilian goods.
Asian nations, among the largest exporters to the U.S., pledged to support domestic businesses affected by the new trade barriers. South Korean Prime Minister Han Duck-soo directed officials to assess the potential impact of the 25% tariff and devise strategies to minimize economic damage. Meanwhile, China’s commerce ministry vowed to take countermeasures to defend its interests, although it did not specify what actions it might take. Beijing has previously responded to U.S. **tariffs** with higher duties on American agricultural exports and restrictions on the supply of rare minerals crucial to high-tech industries.
Several countries took issue with the rationale behind the U.S. tariffs. Australian Prime Minister Anthony Albanese argued that the **tariffs** imposed on Australian goods were unjustified, noting that under the two countries’ free trade agreement, a truly reciprocal tariff should be zero. New Zealand’s trade minister, Todd McClay, echoed similar concerns, pointing out that his country maintains a low-tariff system and would not retaliate, as doing so would harm New Zealand’s consumers.
Mexico and Canada were initially spared from the latest round of **tariffs**, provided their goods met the terms of the existing free trade agreement with the U.S. However, earlier announced 25% **tariffs** on automobile imports were set to take effect at midnight. Mexican President Claudia Sheinbaum stated that she would assess the impact before deciding on any countermeasures, emphasizing that her priority was strengthening Mexico’s economy rather than engaging in retaliatory measures. Canada had already imposed its own counter-tariffs in response to previous U.S. levies on steel and aluminum, which Trump had justified as a means to curb the trafficking of fentanyl.
Trump insisted that he did not blame foreign governments for protecting their own industries but maintained that the U.S. was now acting in its own economic interests. He declared that the country could no longer afford to surrender unilaterally in global trade and accused previous administrations of enabling economic exploitation at America’s expense.
Criticism of Trump’s **tariffs** extended beyond immediate economic concerns. Chilean President Gabriel Boric warned that such protectionist measures not only create instability but also undermine established global trade rules. Colombia’s President Gustavo Petro described the move as a milestone signaling the end of neoliberal free trade policies.
Experts argue that an all-out trade war would ultimately be detrimental to all parties involved, including the United States. Matteo Villa, a senior analyst at Italy’s Institute for International Political Studies, pointed out that while the **EU** might need to respond to the **tariffs**, it would be in a weaker position due to its reliance on exports to the U.S. At the same time, he suggested that the **EU**’s best strategy might be to issue a strong but measured response to pressure Trump into negotiations.
**Von der Leyen** confirmed that the **EU** was preparing additional countermeasures to defend its economic interests. Speaking from Samarkand, Uzbekistan, where she was attending the first-ever EU-Central Asia summit, she urged the U.S. to move away from confrontation and toward negotiation. She reiterated that the **EU** had already developed a package of retaliatory measures in response to Trump’s earlier **tariffs** on steel and was now working on further actions if discussions failed.
She also noted that the **EU** was closely monitoring potential indirect consequences of the **tariffs**, warning that the bloc would not accept market dumping or bear the brunt of global overproduction. While she agreed with Trump that some countries had taken advantage of existing trade rules, she stressed that imposing **tariffs** as a primary solution would not address the underlying issues.
The **EU** has compiled a list of U.S. products that could face retaliatory **tariffs**, with some items already subject to suspended duties since 2018. European officials have suggested that further countermeasures could target U.S. services, in addition to goods.
Sweden and Ireland joined the chorus of European nations criticizing the move. Swedish Prime Minister Ulf Kristersson expressed regret over the **tariffs**, warning that escalating trade barriers would ultimately harm citizens and increase global insecurity. However, he emphasized that Sweden was economically resilient and well-prepared to face the challenge. Ireland’s Tanaiste, Simon Harris, called for a calm and strategic response, reaffirming that the **EU** remains open to negotiations but must protect its businesses and workers.
**Von der Leyen** emphasized that the **EU** holds significant leverage in trade and technology and will approach negotiations from a position of strength. The European bloc recorded a trade surplus of €156.6 billion in goods with the U.S. in 2023 but faced a services trade deficit of €108.6 billion.
As tensions rise, the **EU** is aiming to strike a balance between defending its economic interests and preventing a full-scale trade war. Brussels is counting on a firm but proportionate response to push the U.S. toward constructive dialogue while maintaining the stability of the global economic system.