Washington and Brussels have been fighting over a tariff increase since February
Relations with the US may never return to what they used to be, European Commission President Ursula von der Leyen has said, citing tensions with Washington over increased tariffs on European goods.
US President Donald Trump introduced 20% tariffs on European imports in February. The EU responded with its own set of trade penalties. Trump later lowered duties to 10%, pending negotiations. That pause has now been extended until early August.
”We believe that tariffs are a loss for everyone. But we are not naive either: we know that the relationship with the US may never go back to what it used to be,” the EU chief stated at an economic-industrial forum in Rome on Thursday.
The EU’s priority is to stabilize the situation with the US, von der Leyen said. “We are working tirelessly to find an initial understanding,” she added.
The EU chief called Washington “the most important trading and investment partner” of Brussels. In 2024, the US was the largest exporter of goods to the EU and the second-ranking destination for EU imports after China, according to Eurostat.
Trump’s global tariff campaign has grown to include 211 countries. The American leader says his objective is to reduce the US trade deficit and stimulate domestic production.
Since his first term, Trump has been pushing European NATO members to spend more on their own defense. While the bloc’s members agreed to a 2% threshold in February, the US president suggested that NATO countries consider spending as much as 5% of GDP, warning: “if they don’t pay, I’m not going to defend them.”
NATO Secretary-General Mark Rutte has said Trump was right to demand that European members step up military spending.
The bloc subsequently agreed to a 5% minimum in June. NATO leaders insisted that the hike in expenditure was aimed at deterring Russia amid the Ukraine conflict. Some officials suggested that Moscow could launch a full-scale attack on the US-led bloc within a few years.
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.
