Dombrovskis: EU will defend its economy if the US does not change tariff policy

Ogres

The European Union (EU) will act to protect the bloc’s economy and businesses if the United States does not alter its aggressive tariff policy, EU Commissioner for Economy, Productivity, Implementation and Simplification Valdis Dombrovskis (New Unity) stated on Friday.
“We are ready to work with the US and to find constructive, mutually acceptable solutions,” Dombrovskis said in Warsaw ahead of a meeting of EU finance ministers.
“Of course, we are also sending a message that if we do not see movement from the US side and a willingness to move away from this type of tariff policy, we will have to defend our economy. We will have to protect our businesses,” Dombrovskis emphasized.
The Commissioner also expressed the view that the EU would fare better than the United States in the trade war initiated by US President Donald Trump.
Dombrovskis is participating in a two-day meeting of EU finance ministers, where they will discuss the volatility in financial markets and possible measures to mitigate the negative impact of Trump’s tariff policy on the EU economy—should he continue down this path.
Meanwhile, Eurogroup President Paschal Donohoe, who leads the forum of eurozone finance ministers, pointed to the resilience of the eurozone economy.
“I remain very, very confident that the economic fundamentals of the eurozone are strong and stable,” he told reporters.
Donohoe emphasized that Trump’s decision to postpone the introduction of increased tariffs gives Brussels an opportunity to negotiate with Washington and “find an alternative path—one that would avoid a world of lower growth, higher inflation, and multiple risks that could jeopardize the progress made in recent years.”
On Wednesday, Trump announced a 90-day postponement of the new customs tariffs, setting a base rate of 10% for all countries except China. The EU had been targeted with a planned 20% tariff.
On Thursday, the EU also announced a 90-day postponement of its retaliatory tariffs on imports from the US.