The European Union braces for potential economic conflict as U.S. President Donald Trump reiterates threats to impose tariffs on EU goods. Since taking office, Trump has criticized the EU, stating they have been "very, very bad to us." In response, Valdis Dombrovskis, the European Union's commissioner for the economy, asserted that Europe would respond proportionately to any tariffs imposed by the United States.
Dombrovskis made his remarks during an interview with CNBC's Steve Sedgwick at the World Economic Forum in Davos, Switzerland, on Wednesday. He emphasized the importance of strategic alliances between the U.S. and Europe, both economically and geopolitically, while also preparing to defend European values and interests if necessary.
"If there is a need to defend our economic interests we will respond in a proportionate way."
- Valdis Dombrovskis
The European Union is actively engaging in discussions with U.S. counterparts to seek a "pragmatic" solution to the ongoing tariff debate. Dombrovskis highlighted the need for cooperation between the two entities, stating that working together is crucial for addressing global challenges.
In addition to potential tariffs on EU goods, Dombrovskis mentioned that the U.S. administration is considering implementing an additional 10% tariff on Chinese imports starting in February. This move further complicates the international trade landscape and underscores the need for diplomatic negotiations.
"We're ready to defend our values and also our interests and rights if that becomes necessary."
- Valdis Dombrovskis
Despite these tensions, European officials remain committed to finding a resolution. They continue to engage in dialogue with American counterparts to navigate these challenges together. The discussions reflect a broader effort to maintain strong transatlantic relations amidst economic disagreements.
"Very, very bad to us. So they're going to be in for tariffs. It's the only way… you're going to get fairness."
- Donald Trump