Xinhua
04 Apr 2025, 21:48 GMT+10
U.S. President Donald Trump shows an executive order on "reciprocal tariffs" at the Rose Garden of the White House in Washington, D.C., the United States, on April 2, 2025. (Xinhua/Hu Yousong)Unveiled on what U.S. President Donald Trump dubbed "Liberation Day" on Wednesday, the move goes beyond a standard trade dispute; it is a clear political statement that challenges the long-established economic and strategic partnership between the United States and Europe.by Xinhua writer Liao LeiBRUSSELS, April 4 (Xinhua) -- Washington's announcement of sweeping "reciprocal tariffs" has sent shockwaves through European capitals and deepened the rift across the Atlantic.Unveiled on what U.S. President Donald Trump dubbed "Liberation Day" on Wednesday, the move goes beyond a standard trade dispute; it is a clear political statement that challenges the long-established economic and strategic partnership between the United States and Europe.The European response was swift and pointed. European Commission President Ursula von der Leyen cautioned against dire consequences and revealed that the first package of countermeasures is "already finalizing." Rome condemned the move as a mistake; Berlin warned of lasting damage to global trade; French President Emmanuel Macron called for the suspension of European investment in the United States.European Commission President Ursula von der Leyen gives a press statement in Samarkand, Uzbekistan, April 3, 2025. Von der Leyen expressed deep regret over the U.S. move to impose universal tariffs on the whole world, warning that the impact could be devastating. (European Union/Handout via Xinhua)The urgency of these reactions reflects a deepening anxiety among European leaders, who view the U.S. action as a calculated effort to destabilize the continent's economic footing and strain its internal unity.Historically, the transatlantic alliance has weathered several trade disputes, including the 2002 steel tariffs, the prolonged Boeing-Airbus dispute and the 2018 tariffs on steel and aluminum during Trump's first term.However, the latest tariffs strike at the very foundation of the transatlantic economic relationship. The EU exports goods worth 531 billion euros (about 587 billion U.S. dollars) to the United States -- a lifeline for critical industries such as German automobiles, French and Danish renewable energy equipment and Italian machinery. For these sectors, the U.S. market is indispensable.The timing of the tariffs could not be worse for Europe. With the German economy contracting for the second consecutive year and eurozone growth barely above zero, the tariffs add to an already fragile economic situation. The European Central Bank also finds itself in a dilemma between fighting inflation and supporting weak growth, making the continent particularly vulnerable to external shocks."This is hurting in particular the most vulnerable citizens. All businesses -- big and small -- will suffer from day one," von der Leyen said. For many on the European continent, the United States is seeking to weaken European cohesion and secure its own strategic interests in energy and defense.However, the broader worry for Europe is that the multilateral system itself, once a bulwark of predictability and rules, is unraveling.
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