All European trade must prepare for Trump’s tariffs

By: Trademagazin Date: 2025. 01. 22. 10:21

Europe must prepare for potential trade tariffs from new US President Donald Trump, warned Christine Lagarde, President of the European Central Bank (ECB), at the World Economic Forum in Davos. Lagarde said Trump had chosen a more targeted approach and not imposed general tariffs on his first day in office, which was a “very smart decision”. The ECB President stressed that Europe needed to be proactive in preparing for the measures expected in order to be able to respond appropriately.

European Union Commissioner for Economy Valdis Dombrovskis also spoke in Davos and confirmed that the EU would respond proportionately to Trump’s tariffs, defending its own interests, values and rights. Dombrovskis said the EU would not hesitate to take the necessary measures if US tariffs had a negative impact on the European economy.

Since his inauguration on Monday, Trump has repeatedly mentioned that he would impose tariffs on goods from the EU, justifying his decision by saying that the European Union has been “very bad” towards the United States. He has also promised to tighten his grip on China, with negotiations underway for an additional 10% tariff on Chinese products. In December, Trump threatened the EU with tariffs if it did not buy American oil and gas.

Although Trump has not yet fully implemented his campaign threats in the early days of his presidency, it has become clear to Europe that serious challenges lie ahead in transatlantic trade. The European Union is committed to developing responses to safeguard its economic interests and protect its global position.