According to US President Donald Trump, April 2 marks the “liberation day,” the day of the United States’ economic declaration of independence. The European Union finds itself on the list of reciprocal tariffs, facing a general 20% tax, with the automotive sector being hit particularly hard by a 25% tariff. From a European perspective, however, April 2 is more aptly seen as the beginning of an unavoidable trade war. We must work to mitigate the negative consequences foreseen by economists. April 2 could also become the “day of inflation,” as one of the foreseeable consequences of the new U.S. tariffs is an increase in prices across global markets. Unfortunately, should we enter an inflationary spiral, consumers will bear the cost.
A third, equally concerning possibility is that April 2 might mark the onset of an economic recession. If the global trade war escalates through retaliatory measures, it could easily push the most trade-exposed economies—those highly dependent on international commerce and vulnerable to disruptions in global supply chains—toward economic downturn. The tariffs announced by President Trump are unjustified, disproportionate, and, from the perspective of World Trade Organization (WTO) rules, illegal.
In this context, the European Union must respond decisively, but with measures that are justified, proportionate to the damage inflicted on our economies, and fully compliant with global trade rules. The EU must remain open to dialogue in the immediate future. The European Commission must continue its engagement with the business community. Beyond the most affected sectors—steel, the automotive industry, and pharmaceuticals—strategic dialogue must be extended to all industrial and service sectors that are vulnerable in the context of this trade conflict.
Above all, we must carefully safeguard European unity and solidarity. A fragmented approach, driven by individual European capitals will be counterproductive. The EU’s negotiating power lies in its single market and its 450 million citizens. Political decisions must always be taken with the well-being of our citizens, the preservation of jobs, and the EU’s strategic interests in mind.
MEP Iuliu Winkler Vice-Chair, Committee on International Trade European Parliament
Article published by stiriletransilvaniei.eu – https://bit.ly/3R0mwc
