With the Trump administration touting an America First agenda, the EU said it is now the United Nations’ most reliable partner, and is committed to the UN’s principles of multilateralism.
European Commission President Ursula von der Leyen said that despite geopolitical shifts shaking alliances, the EU offers stability and predictability in the current climate.
“In a moment of increased global confrontation and competition, we must strengthen our partnership further,” said von der Leyen as the bloc held a summit in South Africa earlier this month to strengthen its diplomatic footing.
“We must work closely together, to ensure the future is built on our shared belief in cooperation and human dignity, in stable relations, (and together) we stay the course.”
TARIFF WAR
Currently, 30 per cent of global trade is conducted between the EU and US, making it the largest bilateral trading relationship in the world.
But Trump’s tariff blitz has unsettled markets and put Europe’s policymakers on edge.
On Thursday (Mar 27), the American president announced levies of up to 25 per cent on all automotive imports. The US is the EU’s largest market for cars, accounting for almost a quarter of its total automobile exports.
Earlier this month, Trump slapped sweeping 25 per cent tariffs on all steel and aluminum imports, extending the duties to hundreds of downstream products made from the metals.
The EU has responded to Washington’s duties with threats of countermeasures.
The European Commission, the executive arm of the EU, has warned that such tit-for-tat tariffs lead to lose-lose outcomes and is calling on Washington to change course to prevent ties from souring further.
CHARM OFFENSIVE FOR NEW TRADE PARTNERS
In face of a tariff war, European leaders have in recent months been on a charm offensive to seek new business suitors.
“Forging these partnerships is essential,” said von der Leyen.
“Because we have learned the very hard way that sourcing the products we need from partners we trust, is the best way to avoid over-dependencies or to avoid vulnerabilities and blackmail,” she added.
The EU signed a trade deal with the four nations from South America’s Mercosur bloc Argentina, Brazil, Paraguay and Uruguay last December, following years of negotiations.
