U.S. Commerce Secretary Warns of Trade Tensions with EU Over Trump's New Tariffs

Potential U.S.-EU Tariff Conflict

According to Главком: U.S. Commerce Secretary Howard Lutnick has warned of a potential tariff conflict between the United States and the European Union. He acknowledged that the situation could initially worsen but expressed confidence that it would ultimately be resolved through negotiations. Lutnick cautioned about the risk of escalation, drawing on previous experience dealing with Donald Trump.

On January 17, Donald Trump announced his intention to impose new tariffs on a number of European countries. The planned duties are set at 10%, effective from February 1, with a potential increase to 25% starting June 1. This move has caused concern among European leaders, who plan to hold an emergency summit in Brussels on January 21 to discuss possible countermeasures.

Risks of Escalation

Lutnick noted that if Europe follows through on threats to impose retaliatory tariffs, it could trigger a tit-for-tat escalation. He expressed confidence that the matter would conclude with a positive conversation between Donald Trump and European Commission President Ursula von der Leyen, as happened previously.

The Secretary also emphasized that the United States knows who its allies are, and should a dispute arise, it would be normal, as the typical outcome of such situations is known. This potential trade dispute comes at a time when both economies are navigating post-pandemic recovery and geopolitical uncertainty.

Past trade wars between Washington and Brussels have resulted in significant losses for the automotive, pharmaceutical, and energy sectors. In the context of the new tariffs, these industries could again be at risk if the situation is not resolved through talks.

The imposition of new duties presents a serious challenge to U.S.-EU economic relations. Both sides have a strong interest in maintaining trade stability, as an escalation of tariff conflicts could have negative consequences not only for the countries involved but for the global economy. Negotiations, which may follow the January 21 summit, could be crucial in preventing a deepening of a trade war that has already harmed many economic sectors.