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If a trade war breaks out: It will be bad for both the US and the EU

Given Donald Trump's threat to impose US tariffs, European leaders show combativeness and self-confidence

Feb 3, 2025 18:30 44

If a trade war breaks out: It will be bad for both the US and the EU  - 1

Given Donald Trump's threat to impose US tariffs, European leaders show combativeness and self-confidence. German Chancellor Olaf Scholz does not even rule out possible countermeasures from the EU.

European leaders want to avoid a trade war with the US, but emphasize Europe's ability to react if things escalate. German Chancellor Olaf Scholz announced European countermeasures in case the US imposes additional tariffs on EU goods.

Sholz: "We can react"

„As a strong economic zone, we can react to customs policies with customs policies. This is what we have to do and we will do it," Scholz said before an informal EU summit in Brussels.

Both countries benefit from the exchange of goods and services, the chancellor stressed. "If customs policy now makes this exchange difficult, it will be bad for both the United States and Europe," Scholz assured. According to him, the goal should be to continue cooperation, "but it is clear that a prerequisite for such an understanding is to recognize your own strength. Europe can cope," the German chancellor pointed out.

The EU's High Representative for Foreign Affairs Kaia Kallas also called on both countries to show prudence: "We need America and America needs us," she stressed.

"Trade wars are a huge mistake"

Other participants in the summit expressed similar sentiments. Polish Prime Minister Donald Tusk said trade wars are always a mistake. "Poland will certainly be the country that insists on prudence and caution. But we must also make it clear that any plans to impose tariffs and wage trade wars are a complete mistake," Tusk said in Brussels.

French President Emmanuel Macron stressed that if Europe is attacked economically, it will have to show respect. The latest steps taken by the US government will only make Europe stronger and more united, he believes.

Luxembourg: If you want a trade war, you will get it

Luxembourg Prime Minister Luc Frieden has been combative about US trade tariffs: "We are not weaker than the United States of America. If someone wants a trade war, they will get one."

At the same time, however, he stressed the need to ensure good transatlantic relations. “Trade conflicts are always bad“, said the Luxembourg ambassador. “We should not immediately get upset every time the American president makes a decision“.

At this stage, Europe is not affected by special tariffs, the DPA agency recalls.

Finland is in favor of negotiations with Trump

Finland's Prime Minister Petteri Orpo was more restrained in his assessment: “We are prepared for this. I am against starting a (trade) war. Instead, we should negotiate," he said.

US President Donald Trump has previously announced punitive tariffs on goods from China, Canada and Mexico and has also threatened the EU with tariffs over the trade surpluses of countries such as Germany.