EU Vows Retaliation if US Imposes 25% Tariffs, Says French Finance Minister
The European Union will impose retaliatory tariffs if the United States follows through with a proposed 25% tariff hike on European goods, French Finance Minister Eric Lombard has warned. Speaking on the sidelines of the G20 finance ministers’ meeting in Cape Town, Lombard told AFP that the EU is prepared to act in defense of its economic interests.
“It is clear that if the Americans maintain the tariff hikes, as President Trump announced, the EU will do the same,” Lombard said. “Even if it is not in the general interest, we too must protect our interests and the interests of the countries of the union.”
Rising Tensions Over Trade
President Donald Trump announced the potential tariffs on Wednesday, citing what he described as unfair European trade policies. His comments further inflamed long-standing tensions, with Trump claiming that the EU was created to “screw” the United States.
Despite this rhetoric, Lombard emphasized the importance of transatlantic cooperation. “The United States is a great ally,” he said, stressing the deeply intertwined nature of both economies. “There is no alternative either for the United States in trade with the rest of the world or for us in trade with the United States. It is in the interests of both economies to continue to cooperate.”
G7 Leaders Push Back
Diplomats from G7 nations reportedly urged US Treasury Secretary Scott Bessent to reconsider the tariff hikes, warning that trade wars contribute to inflation and economic slowdowns. While Bessent did not attend the G20 talks in person, he participated virtually in the G7 discussions.
Lombard confirmed that negotiations between the US and EU would begin on April 2, with Europe committed to reaching a fair agreement. “Europe is fully united,” he said, expressing confidence that the bloc would stand together in response to US actions.
‘We Will Talk’
Despite the aggressive rhetoric from Trump, Lombard remains hopeful that dialogue will prevail. “At their talks in Washington on Monday, Bessent presented himself as being open to discussion on all subjects,” he noted. “So I interpret this openness as: we’re going to talk.”
The US and EU remain each other’s largest trading partners and major investors in each other’s economies. “There are European parts in Boeing and American parts in Airbus. The same is true of the automotive industry and many other sectors,” Lombard pointed out, underscoring the need for cooperation rather than conflict.
Focus on Taxation of the Ultra-Rich
Beyond trade, global taxation policies were also a key topic at the G20 finance ministers’ meeting. Lombard reiterated France’s commitment to pushing for greater taxation of the ultra-rich, though he acknowledged that implementation remains a distant goal. “We are a long way from implementing measures, but these are projects supported by France,” he said.
As the April 2 negotiations approach, the world will be watching to see whether the US and EU can defuse tensions or if a full-scale trade war is on the horizon.
In other news: UK Prime Minister Keir Starmer Ready to Deploy Troops to Ukraine for Lasting Peace
EU Vows Retaliation if US Imposes 25% Tariffs, Says French Finance Minister