Bank of Finland chief urges EU to stand firm against US trade threats

The EU must be prepared to retaliate if President Donald Trump imposes punitive tariffs on European goods, according to Bank of Finland governor Olli Rehn.

Rehn warned that while a trade war between allies was undesirable, the EU should not back down in the face of US threats, Caliber.Az reports via foreign media.

He emphasized that the bloc must take proportionate measures if targeted by tariffs.

Rehn’s remarks come in the context of increasing worries about possible US tariffs on European imports, after Trump’s decision to impose duties on goods from Canada, Mexico, and China.

While negotiations are the preferred path, Rehn stressed that Europe must be ready to defend its interests if talks fail, citing the importance of EU unity in trade policy.

Despite concerns over the impact of a trade war, Rehn noted that retaliatory tariffs would not only affect the EU but also hit US consumers and could worsen inflation. He also dismissed the idea that Trump’s tariffs were purely a negotiation tactic, suggesting that the US president’s approach was more ideological than pragmatic.

The EU, with its large single market and expanding trade network, has the means to stand up to US trade pressure, Rehn concluded.

By Aghakazim Guliyev