As President Donald Trump continues enforcing high trade tariffs on foreign nations, Europe appears to be preparing a forceful response.
On Thursday, Trump issued a warning of steep tariffs against the European Union, labeling the bloc “one of the most hostile and abusive taxing and tariffing authorities in the world.”
He further claimed that the EU was “formed for the sole purpose of taking advantage of the United States” and threatened to impose a 200% tax on European wine.
While American businesses have cautioned that the tariffs could backfire, reports suggest Europe is preparing to retaliate in ways that could significantly damage the U.S. economy.
“Inflict as Many Negative Consequences as Possible”
Former French President François Hollande voiced strong concerns about Trump’s trade policies, stating that the U.S. can no longer be considered a reliable ally.
He told Times Radio: “We do not expect an ally to make our lives more difficult.”
Hollande urged the EU to respond with full force against Trump’s economic measures.
“I think the United States has long been an ally and proved it by coming twice by saving and participating in the liberation of the European continent,” he said. “But today, the Trump administration, without leaving the Atlantic Alliance and without considering itself as an adversary of the European continent, is doing nothing to reassure us either for the security of the continent or on economic and commercial issues.
“On the contrary, by imposing tariffs, there will be an impact on the growth of our two continents and inflation will increase.”
He argued that the EU must match Trump’s aggressive stance, stating:
“France and Europe must respond at the same level as the attack leveled against us. I think that the best way to get Donald Trump to step back is to inflict as many negative consequences as possible on his economy so that Wall Street collapses, so that inflation grows in the United States, so that businesses start to worry and so that Trump’s promise to make Americans richer becomes untenable.”
Tariff War Could Impact Americans at Every Level
Economists warn that broad tariff hikes could worsen inflation, making it more difficult for governments to control consumer prices. Experts argue that the impact will disproportionately affect lower-income households, while even wealthy business leaders are raising concerns.
Tesla, the EV company owned by Elon Musk, published a statement on Friday cautioning against the tariff increases. The letter highlighted the risks posed to U.S. companies, warning that American exporters were “exposed to disproportionate impacts” if other nations countered with retaliatory measures.
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