Trump ignites trade tensions with EU; UK may escape tariffs
Donald Trump followed through on his threats, with the first high import tariffs affecting Mexico, Canada, and China. The list also includes the EU, which, as German Chancellor Olaf Scholz mentioned, is aware of how to defend itself.
German Chancellor Olaf Scholz threatened US President Donald Trump with retaliatory measures if tariffs are imposed on EU products. At an informal EU summit in Brussels, Scholz said the European Union is a robust economic area and can "respond to tariff policy with its own tariff policy. "That's exactly what we must and will also do," he emphasised.
Attempts at agreement
The first goal, however, is to reach an agreement with Trump. "Both the USA and Europe benefit from the exchange of goods and services. If tariff policy now makes this difficult, it will be bad for the USA and Europe," stated Olaf Scholz. He suggested that the EU and the USA should resume talks on a free trade agreement.
French President Emmanuel Macron expressed a similar view. "If the EU is attacked on trade issues, Europe would have to gain respect as a confident power and respond appropriately," he noted.
Meanwhile, Polish Prime Minister Donald Tusk warned against "stepping into a completely senseless conflict," but also called for unity and solidarity in Europe. "This may be the first test of its kind for the solidarity and unity of the European Union in a very unusual situation, where we are dealing with a series of surprises and unexpected actions from our closest ally," he said in Brussels.
Trump makes an exception for London
This past weekend, Donald Trump imposed tariffs on goods from Mexico, Canada, and China. He also announced that "it will certainly happen" in the case of the European Union. In doing so, he fuelled fears of a global trade war that could slow economic growth and raise costs for consumers. The tariffs he announced could also seriously harm Germany, particularly its automotive industry.
Trump further announced that he might exempt the United Kingdom from the planned tariffs. He told reporters this on Sunday, after returning to Washington from his Mar-a-Lago estate in Florida. Although, in his opinion, the UK "overstepped" in trade matters, he believes that tariffs could be avoided. Referring to the trade imbalance with the UK, Trump added: "I think that it can be fixed."
