European Official: Keeping Reciprocal Tariffs At 10 Pct Represents A Blow To Global Economy

(MENAFN- Kuwait News Agency (KUNA)) BRUSSELS, April 11 (KUNA) -- The European Commissioner for Economy, Valdis Dombrovskis, said on Friday that keeping U.S. President Donald Trump's reciprocal tariffs at 10 percent represents a blow to the global economy, emphasizing that "the United States itself will be the first and most affected by these tariffs."
Dombrovskis explained at a press conference following a meeting of European economy ministers held in Warsaw, that economic forecasts have become "more uncertain" due to the impact of President Trump's administration's decision to impose comprehensive tariffs on most countries around the world.
The Commissioner welcomed the 90-day pause on reciprocal tariffs over 10 percent, saying it "opens the door for negotiations." However, he stressed that the 10% tariffs remain in effect and are harmful to the global economy, noting that the U.S. has not suspended its 25 percent tariffs on steel, aluminum, or auto parts.
He noted that the rapid nature of these developments makes it difficult to assess their impact on the EU's economic outlook.
European ministers agreed that "the U.S. itself will be the first and most affected by these tariffs."
The Commissioner explained that the tariffs will weaken the U.S. economy by "reducing consumers' purchasing power, lowering real wages, and increasing the cost of imported intermediate goods used in production."
He added that, beyond the direct effects of the tariffs, they could lose investors' confidence in the U.S. economy, exacerbating the negative impact on GDP, which he expects to decline by between 0.8 percent and 1.4 percent by 2027. He anticipates a negative impact on the EU's GDP of about 0.2%.
Dombrovskis emphasized that "Europe did not initiate this confrontation, and does not want it," asserting that "tariffs contradict the political and economic logic of the deep and long-term transatlantic trade partnership, valued at EURO 1.6 trillion in 2023."
He noted that global financial markets have already reacted negatively to these developments, experiencing sharp volatility and intense selling in recent days.
He confirmed that the European Commission will closely monitor financial developments in the coming days and weeks, expressing the Union's readiness to negotiate a "mutually acceptable outcome while defending our economic interests."
Dombrovskis stated, "There is no need to continue harming the U.S. economy and our economy." He affirmed that the EU will continue to work on "deepening the single market, enhancing our competitiveness, and diversifying our trade partnerships with other parties."
He reiterated the EU's commitment to a rules-based international system and to collaborating with international partners through multilateral forums, including the G20 and the G7. (end)
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