Increased U.S. Protectionism Would Harm Both Economies

BRUSSELS (Reuters) – Increased protectionism in U.S. trade policy could be detrimental to both the United States and Europe, warned European Economic Commissioner Paolo Gentiloni on Friday.

U.S. President-elect Donald Trump has suggested imposing a 10% tariff or more on all goods imported into the United States, which is Europe's primary trading partner.

Gentiloni stated, "The level of integration between our economies is such that EU-U.S. trade relations are a stabilizing economic and political force," during a press conference.

He emphasized that despite existing trade disputes and regulatory differences, both regions have a mutual interest in maintaining high standards, fair competition, and stability in global markets.

In this light, a potential protectionist shift in U.S. trade policy would significantly harm both economies. Gentiloni assured that the European Commission would collaborate with the next U.S. administration to promote a "strong transatlantic agenda" and ensure open, secure international trade channels.

He pointed out that Germany and Italy would be the most impacted by the proposed increase in U.S. tariffs, given their substantial exports to the United States. Gentiloni warned that these tariffs would exacerbate the challenges faced by manufacturers in both EU countries.

Furthermore, he noted that tariffs might negatively affect the U.S. economy by generating inflation and its associated consequences.