Everyone loses in a protectionist trade war, EU officials warn as Trump prepares to launch tariffs

EditorSenad Karaahmetovic
Published 03-02-2025, 02:10 pm
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Investing.com -- In response to potential tariffs from U.S. President Donald Trump, Spanish Economy Minister Carlos Cuerpo emphasized the need for unity within the European Union (EU).

Cuerpo made these remarks on Monday, highlighting that the EU should not be "naive" and must ensure its companies are able to compete equally with international rivals.

The EU has always been open to trade and supports a globalized world market, Cuerpo said in an interview with Spanish radio station RNE. The minister's comments come in the wake of President Trump's recent tariff orders on goods from Mexico, Canada, and China.

In the past, President Trump has also suggested imposing tariffs on European goods. However, according to White House press secretary Karoline Leavitt, the president has not yet decided on a timeline for implementing these tariffs.

French central bank governor Francois Villeroy de Galhau expressed concerns on Monday about the economic uncertainty that could result from Trump's trade tariffs.

Villeroy, also a member of the European Central Bank (ECB), described the tariffs as "very brutal", particularly for the auto sector.

Villeroy warned that everyone loses in a protectionist trade war. While he did not rule out the possibility of the EU responding in kind if Trump imposes tariffs on the bloc, he urged caution. The primary focus, Villeroy said, should be on strengthening the EU's economy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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