Reasons for the EU’s Cautious Approach Toward U.S. Tariff Hikes

2025/06/07 | Economy, interview, top news

Online Strategic Council – Interview: A European and American affairs expert stated that the European Union, due to its unstable economic situation and the Ukraine issue, is compelled to accommodate the U.S., and thus, it does not challenge America over the tariff hikes.

Ali Bigdeli, in an interview with the Strategic Council on Foreign Relations website regarding the tariff dispute between Europe and the U.S., said: “Generally, Trump does not have a favorable view of the European Union and believes there should not be two equal powers on both sides of the Atlantic. Moreover, Trump’s general policy opposes treaties and unions; thus, he makes every effort to prevent the strengthening of such alliances. In this context, despite being a long-standing ally of the U.S., the EU is no exception.”

He added: *”During his first presidential term, Trump tried to pull the UK out of the EU—and he succeeded. However, the British later realized that leaving the Union was not in their interest, as three million British workers across the EU effectively became unemployed, and £40 billion in trade profits from UK-EU interactions were lost. This is why Keir Starmer, the current UK Prime Minister, is trying by all means to reconnect the country with the EU, though he has not succeeded so far.”*

Bigdeli stated: “Trump’s general policy of using tariff hikes, especially as a tool to pressure countries, has failed. After imposing maximum tariffs, Trump set conditions to delay or reduce their implementation, indicating the free market’s strong reaction to this policy. Hence, there is a possibility that Trump may cancel or reduce European tariffs, as he did with China.”

The European and American affairs expert said: “Recently, during a meeting at the White House with Ukrainian President Zelensky, Trump showed that he disregards the EU on the Ukraine issue, which has greatly upset Europe. Although Trump is trying to distance himself from the Ukraine war, he remains indecisive. In contrast, Europeans attempt to control the situation and avoid tension with Trump.”

He referred to Trump’s lack of success in NATO, Ukraine, Iran, and Gaza issues: “Thus, Europe is in no hurry to take a firm stance against the U.S. and engage in a challenge with Trump, especially over tariffs.”

The expert, pointing to the EU’s unfavorable economic situation, including France, the UK, and Germany, stated: “Even if Europe wanted to, it cannot ignore the U.S. trade market, as it cannot find a comparable market elsewhere. Today, the tariff hike has reduced trade volume between the U.S. and the EU. Although Trump’s view of the EU in the tariff debate is instrumental and humiliating, and his approach toward Europe on NATO and Ukraine is unfavorable, Europeans are forced to remain cautious in response to his actions due to their own and the EU’s economic conditions.”

Bigdeli emphasized that uncertainty in Europe-U.S. relations on various issues, including tariff hikes, will persist, and Trump will continue using tariffs to advance his policies against the Union.

The European and American affairs expert said: “Neither the EU nor the U.S. wants to lose each other’s financial and economic markets in the tariff game, especially the EU, which, given its high trade volume with the U.S., cannot take this risk. Although both sides are economically and commercially significant to each other, Trump does not stop playing the tariff game.”

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