Washington: US President Donald Trump has hinted that the European Union (EU) could be the next target for new tariffs, signaling the possibility of escalating trade tensions. The EU has responded with strong criticism, vowing to take immediate countermeasures to safeguard its economic interests. “If unjustified tariffs are imposed on the EU, this will not go unanswered and will lead to decisive retaliatory measures. The EU will act to protect its economic interests. We will safeguard our workers, businesses, and consumers,” stated Ursula von der Leyen, President of the European Commission.

According to Azeri-Press News Agency, British political scientist Neil Watson described Trump’s tariff strategy as ill-advised and counterproductive. He cautioned that such measures could lead to shortages of raw materials in the US, as domestic supplies are inadequate. This, in turn, could inflate manufacturing costs and render US products uncompetitive on the global market, potentially leading to business closures, mass unemployment, and economic downturn.

The EU, meanwhile, may pivot to alternative markets, particularly in the Far East and Gulf regions, to replace the US as a client for its steel and aluminum exports. These markets could benefit from lower raw materials costs, making their products more competitive and further diminishing the appeal of US-made goods. Ursula von der Leyen has suggested that reciprocal tariffs on US products could be forthcoming, echoing the trade tensions experienced during Trump’s first administration.

Neil Watson highlighted that industries such as heavy mining, extraction, smelting, and metals processing across the EU would face significant challenges as they adapt to changes in their client base. He warned that this could signal the end of US manufacturing, which may become uncompetitive globally, benefiting regions like the Far East. While the EU’s economy might face temporary instability, it could ultimately stabilize with new, stable clients. Watson emphasized that US protectionism might backfire, leading to adverse consequences for the American public.

Political scientist Matin Mammadli also weighed in, noting that Trump’s tariffs could severely impact the coal and aluminum industries within the EU. He pointed out that while additional customs duties could affect EU countries, they could also have repercussions for the US economy. Given the substantial trade turnover between the EU and the US, any escalation in this trade war could significantly impact both economies.

Mammadli further remarked that this economic conflict could mark a return to an era of protectionism, as Trump’s sanctions aim to protect American manufacturers’ interests. However, he warned that these measures could have broader implications, potentially reducing global trade turnover and GDP across countries. The world’s largest economy taking steps toward increased protectionism could have a ripple effect, impacting the global economy.