'Reciprocal' US tariffs: EU Commission head says 'trade wars and punitive tariffs make no sense'

By Necva Tastan Sevinc

ISTANBUL (AA) - European Commission President Ursula von der Leyen opposed on Friday "reciprocal" US tariffs to the EU, saying "trade wars and punitive tariffs make no sense."

"A stronger Europe works with the United States to deter the threats we have in common as partners, and this is why we believe that trade wars and punitive tariffs make no sense," Von der Leyen said at the 3rd Munich Security Conference.

Von der Leyen outlined the damaging effects of tariffs, which she said "act like a tax" and lead to inflation.

"The hardest hit are inevitably workers, companies, and the small-income middle classes on both sides of the Atlantic," she explained.

She emphasized that tariffs can disrupt essential transatlantic supply chains, which would harm both economies.

"We do not believe that this is good business, and we want to avoid a global race to the bottom," von der Leyen said.

However, she made it clear that "unjustified tariffs on the European Union will not go unanswered."

Von der Leyen also stressed the strategic importance of a stable Europe for the security of both the EU and the US.

"A failed Ukraine would weaken Europe, but it would also weaken the United States," she argued, adding that it would "intensify the challenges in the Indo-Pacific and threaten our shared interests."

"The authoritarians of this world are carefully watching whether there’s any impunity if you invade your neighbor and violate international borders, or whether there are real deterrents," von der Leyen warned.

She also announced that she would propose activating the "escape clause" for defense investments.

This will allow EU member states to "substantially increase their defense expenditure" in light of growing security concerns, she added.

"We empowered member states with extraphysical room by activating the escape clause in simple terms; we empowered member states to substantially increase public investments linked to the crisis. I believe we are now in another period of crisis, which warrants a similar approach," she stressed.