US President Donald Trump’s new tariffs mark the latest escalation in the ongoing trade war between Washington and its global partners. For the EU, this could lead to damages reaching tens of billions of euros.
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00:00They will impact everything from pharmaceuticals, semiconductors to wood products.
00:07U.S. President Donald Trump's tariffs of 20 percent on all imports from the European Union
00:12mark the latest escalation in the ongoing trade war between the U.S. and Europe.
00:17For the EU, a big net exporter to the U.S., this could lead to damages reaching tens of billions of euros.
00:25I deeply regret this choice.
00:28Let's be clear-eyed about the immense consequences.
00:32The global economy will massively suffer.
00:36Uncertainty will spiral and trigger the rise of further protectionism.
00:41The latest package comes in addition to the 25 percent import tariffs on cars that have now come into force.
00:48A major blow to Europe's car manufacturers.
00:50Approximately 20 percent of vehicles produced in the EU are exported to the U.S. each year.
00:56All of these will now be subject to the new tariffs.
00:59They will have a devastating impact on European exports to the United States.
01:04So they will dampen revenues, market shares, and that will have a ripple effect also on all of the supply base in Europe.
01:12So it impacts Germany, German manufacturers, but all of the European auto industry at large.
01:18The mood of many members of the European Parliament gathered in Strasbourg this week is clear.
01:23They want a strong and united reaction from the EU.
01:26I can assure you that the EU stands together in the area of trade.
01:32We are 450 million people.
01:37We are an economic powerhouse and have many more ways of reacting along with our partners compared to options available to smaller states.
01:48EU countermeasures that have already been approved for the 14th of April include iconic American products like bourbon whiskey or Levi's.
01:55Now additional tariffs will be discussed.
01:59The need to strike a balance between what we think is the right political response,
02:04which will be to say you need to stop and we are going to adopt countervailing measures,
02:11and the economic reality that putting in place counter tariffs actually could be counterproductive for the European economy.
02:19The EU has announced it will carefully review the package before deciding on its response.
02:24For now, the plan is to apply tariffs only on products that have alternatives within Europe to ease the burden on consumers.
02:31One thing is clear, the bloc wants to show that the world's biggest single market can't be sidelined easily.