Donald Trump has imposed sweeping 20 percent tariffs on the European Union, including Ireland.
“President Trump’s announcement of universal tariffs on the whole world, including the EU, is a major blow to the world economy”, said European Commission President, Ursula von der Leyen.
But Trump claimed tariffs will benefit the US. Although many economists predict American industry and consumers will ultimately suffer higher prices and inflation like the rest of the world.
“These tariffs are going to give us growth”, the US President claimed in a speech in the White House garden.
Taoiseach Micheál Martin said there was “no justification” for the tariffs.
The US government claims that EU “tariffs charged to the USA including currency manipulation and trade barriers” amount to 39 percent.
Trump said he had decided to be “very kind” by “only” imposing a reciprocal tariff at half that rate, 20 percent for the European Union.
“The other countries, they all understand. We’re going to have to go through a little tough love, but they all understand. They were ripping us off”, he said.
The European Union, “they’re very tough traders. You think of the European Union [as] very friendly. They rip us off, so sad to see, it’s so pathetic”, he added.
Ursula von der Leyen has so far not announced EU counter tariffs besides the estimated €18 billion in measures the EU is already taking against the US for imposing tariffs last month on steel and aluminium.
She said the EU’s prefered choice was to negotiate a way out with Donald Trump.
“We are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail”, she said early this morning.
Trump has imposed tariffs on the entire world with a minimum tariff of 10 percent for some countries including the UK.
He is hitting the EU with a 20 percent tariff, but other parts of the world are being even harder hit.
Cambodia will have to pay 49 percent tax on its exports to the US. China 31 percent and Switerland 31 percent.
“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”, warned Ursula von der Leyen this morning.