European Commission vows firm response to US trade policy changes

The European Commission issued a statement expressing concerns over US President Donald Trump's proposed "reciprocal" trade policy, describing it as "a step in the wrong direction."

In its response, the Commission emphasized that the European Union (EU) remains committed to supporting "an open and predictable global trading system that benefits everyone," Caliber.Az reports citing foreign media.

Furthermore, the EU affirmed that it would react "firmly and immediately" to any unjustified barriers to free and fair trade, including measures that challenge legitimate and non-discriminatory policies.

The Commission's statement came in direct response to President Trump's plan to implement reciprocal tariffs on foreign imports.

“Trump's reciprocal tariffs are a step in the wrong direction,” the Commission said, signaling its opposition to the proposed policy.

The EU's stance on the issue remains clear: the Union will defend its economic interests and continue to advocate for a global trading system that fosters fairness and cooperation between international partners.

At the time of writing, the EUR/USD exchange rate saw a slight increase of 0.11 per cent, trading near 1.0475 after retreating from its intraday highs of 1.0488, suggesting a mild reaction to the ongoing trade tensions.

President Donald Trump signed a memorandum on February 13, calling for the implementation of "fair and reciprocal" trade tariffs on all major US trading partners, including long-standing allies.

The memorandum directs Howard Lutnick, Trump’s nominee for Commerce Secretary, and Jamieson Greer, his Global Trade Representative, to assess the need for "remedies" on a country-by-country basis. The two officials are tasked with delivering a report within 180 days on whether corrective measures are necessary to ensure reciprocal trade relations. Additionally, Russell Vought, Trump’s nominee to head the Office of Management and Budget, will submit a separate report evaluating the fiscal impact of these proposed tariffs within the same time frame.

“I’ve decided, for purposes of fairness, that I will charge a reciprocal tariff, meaning whatever countries charge the United States of America,” Trump stated during the announcement. “In almost all cases, they’re charging us vastly more than we charge them, but those days are over,” he added, emphasizing his stance on fair trade practices.

The President further revealed that, beyond the reciprocal tariffs, there would be additional import taxes imposed on cars, semiconductors, and pharmaceuticals. However, he clarified that these specific measures would be introduced at a later stage.