A FIRM AND swift response to potential American tariffs has been promised by the European Commission in response to plans by US president Donald Trump to introduce sweeping 25% taxes on EU imports.

Tariffs, a tax placed on imported goods and services, could have lasting impacts on businesses in Europe and Ireland as well as political relations between the EU and the US, The Journal reported this month.

Trump’s threat of a trade war would potentially place a €2.50 tax on every €10 worth of goods and services imported to the US, proving devastating to struggling small and medium businesses in Europe that trade across the Atlantic.

Speaking last night, Trump insisted that tariffs would be implemented imminently on EU member states over his belief that the common trading bloc has “taken advantage” of US consumers and markets.

He also falsely claimed that the EU was established to “screw the United States”, rather than to put European conflicts to rest and integrate markets within the continent. Trump added that tariffs could be as high as 25%.

It is not the first time that the US President has threatened tariffs on the EU, but, so far, nothing has come of the statements. Similar measures placed on Mexico and Canada this month were quickly rolled back after leaders came to political agreements.

In a statement to The Journal, the European Commission promised a firm and immediate response to “unjustified barriers to free and fair trade”.

Commission spokesperson for trade, Olof Gill, insisted that the EU will protect businesses and consumers in its member states. He roundly rejected claims made by Trump about the basis and establishment of the EU.

“The EU will react firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies,” he said.

It’s understood that the European Commission may seek to counter American tariffs by placing its own range of targeted taxes on imports from specific sectors of the US market, seeking to place pressure on those around Trump.

One expert, economist at the Institute of International & European Affairs Dan O’Brien, suggested that the Commission may go further and only target Republican-run states in its response.

European trade Commissioner, Slovenian politician Maroš Šefčovič, has already warned that if the bloc is hit “unfairly or arbitrarily, we will respond firmly”.

Tánaiste Simon Harris yesterday chaired the first meeting of a trade body set up in response to fears that Trump could slap tariffs on Irish exports. The Consultative Group on International Trade was established two weeks ago.

At a meeting in Government Buildings, Harris emphasised the importance of being prepared in the event of any future US tariffs. One source noted the government’s position that tariffs are economically counterproductive and drive inflation.

Government sources also note that the EU/US trading relationship is the biggest in the world, and the EU’s position is that a trade deficit exists on the European side, not the other way around. 

British Prime Minister Keir Starmer is in Washington DC today, set to meet with Trump and build on French President Emmanuel Macron’s White House visit earlier this week. Trade, according to a statement, will dominate the discussion today.

Speaking last night, the UK’s ambassador to the US Peter Mandelson said his country and America do not need to fight over trade. He hailed Trump as a “very consequential president” and spoke to the shared history between the two countries.

Addressing a reception at his residence in Washington, the architect of New Labour said: “The US and the United Kingdom, we basically share everything together. We share people, we share cultures, we share a lot of intelligence, we share technologies, and [...] we also share some of the fighting of our adversaries as well.

“And of course one thing we don’t need to fight over is trade, because we have this fantastically fair and balanced trade relationship when we reciprocate so much – that’s just a little thing for you to remember in the coming weeks.”