The trade conflict between the United States and the European Union is set to escalate as Brussels prepares retaliatory measures against Donald Trump’s latest tariff plans, a European investment bank has warned.
Analysts Inga Fechner and Ewa Manthey at ING said tensions are set to boil over as Trump pushes ahead with aggressive tariff policies, saying: “President Trump has laid the foundations for further trade escalations. This will not be the last tariff move. Retaliation is on, and it’s going to get nasty.”
The European Commission has warned that it will not hesitate to hit back against new US tariffs, stating: “The EU sees no justification for the imposition of tariffs on its exports. We will react to protect the interests of European businesses, workers, and consumers from unjustified measures.”
Commission President Ursula von der Leyen reinforced this stance, declaring: “Unjustified tariffs on the EU will not go unanswered—they will trigger firm and proportionate countermeasures.”
Germany’s Chancellor Olaf Scholz echoed this warning, making it clear that Europe will not back down: “We can only say with great caution but great clarity: anyone who imposes tariffs must expect counter-tariffs.”
Donald Trump has confirmed plans to impose blanket 25% tariffs on steel and aluminium imports, including those from Europe. He has also hinted at further tariff hikes, arguing that the EU’s trade policies are unfair to American businesses.
The former president has repeatedly criticised the bloc, claiming: “They don’t take our cars, they don’t take our farm products. They take almost nothing, and we take everything from them.”
Trump’s broader ‘reciprocal tariff’ strategy aims to match the import duties imposed by other countries on US exports—a move that could significantly impact European manufacturers and exporters.
S-EU trade war could have serious economic repercussions, disrupting supply chains and escalating costs for businesses on both sides of the Atlantic.
Meta description: The US-EU trade war is set to escalate as Brussels prepares retaliation against Donald Trump’s sweeping new tariffs. Analysts warn, “it’s going to get nasty.”
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Trump’s trade war with Europe ‘about to get nasty’ as EU prepares retaliation