Following the announcement by U.S. president Donald Trump of fresh duties, German Economy Minister Robert Habeck warned that "American customs mania" could origin massive harm worldwide. “The American customs mania can launch a spiral that can besides drag countries into recession and origin immense harm worldwide,” said Habeck. This will have "a tragic consequences for many people," he added.
"Inflation Day", not "liberation"
– We have always pressed for negotiations, not for confrontation," stressed Green politicians. However, if the US did not want the negotiated solution, the European Union will give "a balanced, clear and decisive response". This requires a unified position – the Minister of Economy continued.
Donald Trump announced on Wednesday, April 2, fresh duties for trading partners worldwide. The EU import duties will be 20 percent. As a "minimum rate" for another countries, the president of the United States listed a 10% rate. Trump called Wednesday "the day of liberation".
However, the German economical minister warned against rising inflation in the US. “For consumers in the US this day will not be a day of liberation, but a day of inflation,” said Robert Habeck.
EU is preparing retaliatory measures
As Brussels says, the European Union is preparing retaliatory measures, but remains open to dialogue. "We are already finalising the first package of measures in consequence to steel duties, and we are now preparing further measures to defend our interests and businesses if negotiations fail," said European Commission president Ursula von der Leyen on the margins of gathering with the Heads of State and Government of the Central Asian countries in Uzbekistan.
The EU will monitor the indirect effects of the duties, announced by the EC Head. The Union cannot absorb global overcapacity or accept dumping on its markets.
At the same time, von der Leyen stressed that it was not besides late to negociate and called on the American side to enter into talks. The aim must be to reduce trade barriers and not increase them.
Von der Leyen: Increase food
Commenting on Donald Trump's decision, von der Leyen said that universal tariffs against the full planet are a major blow to the global economy and the consequences are expected to be enormous. – Millions of people will be confronted with more costly food. They're going to go up the meds and transport. Inflation will rise. And this will harm peculiarly the economically weakest citizens," she explained.
Moreover, due to American customs duties, large and tiny companies will endure – among others due to greater uncertainty, broken supply chains and large bureaucracy. The situation now created by the United States has been described as “complex and chaotic”.
Nevertheless, it called on EU citizens not to lose their optimism. Europe has everything it needs to last this storm – von der Leyen assured. And for the peculiarly affected by U.S. duties, the automotive and pharmaceutical sectors announced fast discussions on possible support.
