The European Union is expected to respond collectively and will approach the situation with caution, firmness, and intelligence, particularly by evaluating the imposition of excessive tariffs on United States products. Such measures could escalate protectionist approaches, potentially leading to counterproductive effects on the prices of intermediate consumptions, stated Pedro Reis in a written response.
According to the Economy Minister, the new tariffs announced by Donald Trump “are not good news for the world” because “tariff wars create inflation, hinder growth, and necessitate a redesign of the international production chain.”
“Their impact is exactly the opposite of what is desired: instead of boosting competitiveness, innovation, and productivity, these movements are hindered because they harm economic growth,” the minister argued.
The President of the United States announced on Wednesday new American tariffs of 20% on products imported from the European Union, in addition to existing 25% tariffs on the automotive, steel, and aluminum sectors.
Trump’s new tariffs are an attempt to grow the United States’ industry while penalizing countries for what he claims are years of unfair trade practices. They have been imposed on all imports with additional surcharges for countries deemed particularly hostile to trade.
