EU warns of immediate, firm response to Trump reciprocal tariffs

Feb. 14 (UPI) -- European Commission President Ursula von der Leyen said during the Munich security conference Friday the European Union will respond if the United States imposes reciprocal tariffs.

"Unjustified tariffs against the European Union will not be left without a response. We will take proportional and clear countermeasures," von der Leyen said.

The European Commission also issued a statement saying promising retaliation to the new tariffs.

"The EU will react firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies," the commission said. "The EU will always protect European businesses, workers, and consumers from unjustified tariff measures."

It added that "reciprocal" trade policy is "a step in the wrong direction."

"For decades, the EU has worked with trading partners like the U.S. to reduce tariffs and other trade barriers worldwide, reinforcing this openness through binding commitments in the rules-based trading system-commitments that the U.S. is now undermining," the commission statement said.

U.S. President Donald Trump signed an executive order on Thursday to eventually impose reciprocal tariffs at the same rate other countries apply to U.S. exports.

The commission said the EU remains committed to an open and predictable global trading system that benefits all partners, noting that more than 70% of imports into the EU are at zero tariffs and the EU's average tariff on imported goods is among the lowest globally.

"The EU maintains some of the lowest tariffs in the world and sees no justification for increased U.S, tariffs on its exports," the statement said. "Tariffs are taxes. By imposing tariffs, the U,S is taxing its own citizens, raising costs for business, stifling growth and fuelling inflation. Tariffs heighten economic uncertainty and disrupt the efficiency and integration of global markets."

Trump has acknowledged that his tariff policy could bring some pain for Americans, but claimed the policy results will be "spectacular."

An estimate from the U.S. National Retail Federation said the Trump tariffs will cost U.S. households $7,600 a year because American importers and ultimately consumers will pay the higher costs for imported goods.