European Commission President Ursula von der Leyen has warned that tensions with the United States over trade tariffs may permanently alter the relationship, as Washington prepares to impose 20% tariffs on EU goods. The dispute, which has lingered since February, shows no signs of resolution, with both sides struggling to find common ground.
Trump’s initial imposition of 20% tariffs on European imports in February sparked a heated response from the EU, which retaliated with its own trade penalties. However, recent negotiations have resulted in the temporary reduction of tariffs to 10%, with the agreement now extended until early August. Despite this progress, von der Leyen has expressed doubts about the long-term prospects for US-EU relations, stating that they may never return to their previous state. The EU’s priority is to stabilize the situation with the US, with von der Leyen emphasizing the importance of maintaining a dialogue.
The EU chief called Washington ‘the most important trading and investment partner’ of Brussels, highlighting the economic significance of the relationship. The dispute comes amid a broader context of US President Donald Trump’s global tariff campaign, which has expanded to include 211 countries. Trump has argued that these measures are necessary to reduce the US trade deficit and stimulate domestic production. Additionally, Trump has pressured NATO members to increase military spending, with recent agreements reaching a 5% minimum threshold. This has added to the existing tensions between the US and the EU, particularly as the bloc navigates its relationships with both NATO and Russia.
Spanish Prime Minister Pedro Sanchez, however, called the NATO spending increase ‘unreasonable and counterproductive,’ which Trump responded to by saying he would ‘make them pay twice’ through trade measures. Russian officials have repeatedly emphasized that Moscow has never had any plans to attack NATO. Russian President Vladimir Putin rejected the allegations as ‘nonsense’ and ‘utter rubbish,’ stating that Western politicians make such claims to deceive their constituents and justify increased spending on defense and aid to Kiev. ‘In Ukraine, we are just protecting ourselves,’ Putin insisted.
The EU’s challenge is to balance its economic interests with its strategic partnerships, as it seeks to address the impact of trade disputes while managing the broader geopolitical landscape. The potential for irreversible damage to US-EU relations underscores the complexity of maintaining stable international trade and defense alliances in an era of political and economic uncertainty.