President Donald Trump announced Monday that he plans to slap 25 percent tariffs on Mexico and Canada starting Feb. 1.
He has not yet singled out Europe in his possible actions.
In the past, Trump has on several occasions threatened to impose tariffs on the EU as well. He has called for the union to buy more American oil and gas to avoid tariffs.
Trump has also emphasized that the EU must reduce the trade deficit with the United States.
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President of the EU Commission Ursula von der Leyen on Monday politely congratulated Trump and hoped for good cooperation to overcome global challenges.
Von der Leyen, who spoke at the World Economic Forum in Davos on Tuesday, explained how the EU intends to act with the United States.
“Our first priority is to communicate quickly, discuss our mutual interests and be ready to negotiate,” von der Leyen said.
“We are pragmatic, but we always stand behind our principles,” he said.
Von der Leyen acknowledged that times are challenging as the rules of the world order are changing.
“We can no longer take anything for granted, but we must act.”
The EU leader attracted Trump to constructive cooperation with practical examples.
Von der Leyen reminded that no economies in the world are as integrated as the US and European economies.
“European companies employ 3.5 million Americans in the United States, and one million American jobs depend directly on trade with Europe.”
The chairman of the commission also reminded that Europe imports twice as many digital services from the USA as from the whole of Asia. Also, half of all liquefied natural gas is imported from the United States.
“Our trade volume is 1,500 billion euros, which is 30 percent of world trade, so there is a lot at stake here on both sides,” von der Leyen said.
A concession to Trump
In his speech, Von der Leyen admitted Europe’s mistakes, for which Trump already criticized the EU during his previous presidency, such as the fact that Europe has relied on Russian energy for too long and outsourced European defense (to the United States).
“Now we have to change too,” von der Leyen said.
The president of the EU Commission was strict on climate matters.
Trump announced on Monday that the United States will withdraw from the Paris climate agreement for the second time.
Von der Leyen underlined that it is impossible to ignore the effects of climate change. He said that “in challenges like this, we don’t race against each other, but against time”.
He reminded that climate change is also affecting the United States and referred to the fires in California and hurricanes in the Caribbean, among other things.
“The Paris Agreement is the best hope for humanity,” von der Leyen said.
The chairman of the commission said that the EU will continue to work to overcome climate challenges in cooperation with other willing countries.
New partners
In Von der Leyen’s speech, you can also read an element of blackmail aimed at Trump: if the United States does not agree to cooperate with Europe, partners will be sought elsewhere.
They have already been found at a fast pace.
The chairman of the commission said that the EU has recently concluded trade agreements with Switzerland, Mexico and the Mercosur countries (Argentina, Brazil, Paraguay, Uruguay and Bolivia).
Von der Leyen said that in the changing times of the world and as competition tightens, Europe must seize new opportunities wherever they arise.
“Now we have to unite across blocks and forget taboos.”
Von der Leyen said that Europe is ready for constructive cooperation also with the number one challenger of the United States, i.e. China, if it takes place while respecting the principles of fairness and reciprocity.
“Our message to the world is simple: if there is mutual benefit in sight, we are ready to cooperate,” von der Leyen said.
Trump has emphasized that he is focusing his policy on the United States, in Europe the eyes are also turning to other countries.
Von der Leyen said that the first trip of the new commission will be to India – the world’s largest democracy, with which the EU wants to develop its strategic partnership.