Although discussions of possible tariffs had been ongoing for some time, the official announcement on April 2 came as a shock to many in the agricultural sector. The European Commission is now preparing a package of potential countermeasures in response.
Ursula von der Leyen: “This is a serious blow to the global economy”
European Commission President Ursula von der Leyen stated that the new tariffs are a major blow to the global economy. She noted that all possible options for the EU’s response are on the table. Among the potential measures being considered are duties on US products that could hurt American industries while being replaceable with alternative suppliers, such as soy from Brazil.
However, European farmers are calling on the EU to avoid retaliatory steps. The umbrella organization Copa-Cogeca urged the EU to negotiate with the US to prevent a trade war.
“Retaliatory measures will not benefit farmers either in the EU or in the US. They will only limit opportunities, raise prices, and weaken the resilience of agricultural businesses,” said Copa President Massimiliano Giansanti.
US farmers also raise concerns
The American Farm Bureau Federation (AFBF) emphasized that trade is crucial for US farmers. Over 20% of their income comes from exports, and they are heavily dependent on imported inputs such as fertilizers and specialized tools.
The AFBF warned that tariff increases threaten the economic stability of US farms, many of which have been suffering losses on staple crops over the past three years. They also foresee long-term damage from potential loss of global market share.
Different tariffs for different countries
President Trump has imposed varying tariff rates depending on the country. A baseline rate of 10% applies to all nations, including the United Kingdom, while China faces a 34% tariff and Cambodia 49%. Trump defended the 20% EU tariff as “low” compared to what he claimed the EU imposes on American products.
He accused other nations of "looting" and “robbing” the US and vowed to rebuild American industry rapidly while breaking down foreign trade barriers.
Economists warn of global risks
Economist Theo Smid from Atradius told ANP news agency that if this trade war escalates, open economies could suffer significant consequences. “This could lead to an increase in global bankruptcies and a slowdown in economic growth,” he warned.
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