BusinessEurope: customs war is not good for either side

BusinessEurope, Europe’s employers’ umbrella organisation, warns that the US decision to impose additional import tariffs on EU products threatens the world’s largest economy.

Reacting to the US decision to impose so-called “reciprocal tariffs”, Markus J. Beyrer, Director General of BusinessEurope, said: “The US decision to impose an additional 20% safeguard tariff on EU products will hurt businesses and consumers on both sides of the Atlantic. The transatlantic economy is the world’s largest and most important economic space. These tariffs increase costs and damage a relationship that supports millions of jobs and fosters innovation. In all likelihood, unilateral additional tariffs on all major US trading partners will lead to retaliatory measures that will further disrupt global supply chains and undermine confidence in international trade, without bringing substantial benefits to either side.

The EU’s response must be coherent, legally justified, proportionate and targeted, while avoiding unintended consequences for EU businesses. Ultimately, it is in the interests of both the EU and the US to find a negotiated solution.

Even more urgently, the EU needs to promote an ambitious trade and investment diversification strategy to build resilience and protect the Union’s economic interests. Rapid ratification of the trade agreements already concluded with Mercosur and Mexico is particularly important. Given the current geopolitical situation, the EU needs to strengthen its economy and its competitiveness in order to increase its negotiating leverage and reduce the risk of economic pressure.”

BusinessEurope is the umbrella organisation of European employers, of which the Confederation of Estonian Employers is a member.

US President Donald Trump imposed “reciprocal tariffs” on all US trading partners this week.