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Today I would like to focus on the threats to global prosperity and stability, thus our competitiveness.
Europe warns of strong retaliation against US tariffs, emphasizing unity, negotiation, and internal market reforms to protect prosperity.
Key Takeaways
- Europe is committed to defending its economic interests against US tariffs through negotiation and potential retaliation.
- Tariffs increase costs for consumers and businesses, harming both European and American economies.
- Strengthening and completing the European single market is essential to enhance competitiveness and reduce internal barriers.
- Diversifying trade partnerships is a key strategy for Europe to mitigate the impact of protectionism.
- Collective European unity and adherence to shared values are critical in facing global trade challenges.
Summary
- The video addresses the rise of protectionism and the impact of US tariffs on global trade and European competitiveness.
- Europe did not initiate the tariff confrontation but is prepared to defend its interests and values.
- The US has imposed a 25% tariff increase on steel and aluminum imports, with further tariffs expected on cars, semiconductors, pharmaceuticals, and timber.
- Tariffs harm consumers and businesses by increasing costs, fueling inflation, and creating bureaucratic barriers.
- Europe’s strategy includes openness to negotiations from a position of strength, readiness to take countermeasures, and diversification of trade partners.
- The European single market is highlighted as a crucial asset that must be strengthened by removing internal barriers.
- Internal market barriers in Europe act like high tariffs, significantly damaging growth and competitiveness.
- Concrete proposals to reduce internal trade barriers will be presented soon to complete the single market’s original vision.
- The video stresses the importance of unity and collective action within Europe to face global economic challenges.
- The single market is described as Europe’s safe harbor amid global economic uncertainty, with a call to finish its development.
Full Transcript — Download SRT & Markdown
Speaker A
And the rise of protectionism, and as our domestic agenda cannot be seen separately from global developments around us, let me start with the US tariffs.
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When the dream of a united Europe began, it started with a very simple idea: let's create one single market.
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Let's break barriers, take tariffs down, that is what made us strong.
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Because our companies grew, and so did the ties that bind us together.
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And then in the same spirit, we worked with partners across the world, including the United States.
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We built strong connections that we believed were unbreakable.
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And trade brought more than prosperity, it brought the idea of a shared way of life.
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And with commerce, our partnership has also grown.
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Countless are the friendships across the Atlantic.
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And because of this collective experience of the last, well, almost 75 years.
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So many Europeans feel utterly disheartened by the announcement from the United States.
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Let me be clear.
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Europe did not start this confrontation.
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We think it is wrong.
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But my message to you today is that we have everything we need to protect our people and our prosperity.
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We have the largest single market in the world.
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We have the strength to negotiate.
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We have the power to push back.
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And the people of Europe should know that together we will always promote and defend our interests and our values.
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And together we will always stand up for our Europe.
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So far the US administration has announced a 25% increase of tariffs on imports of steel and aluminum.
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Cars and car parts.
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The next sectors facing tariffs will be semiconductors, pharmaceuticals and timber.
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And tomorrow we expect another announcement with so-called reciprocal tariffs that will immediately apply to almost all goods and many countries in the world.
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Of course, there are severe issues in the world of trade, without any question.
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Over capacities, we know about the imbalances.
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We see unfair subsidies.
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Denial of market access or the IP theft.
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And I hear Americans when they say some others have taken advantage of the rules.
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I agree.
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We also suffer from it.
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So let's work on it.
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But tariffs across the board make things work worse, not better.
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Tariffs are taxes that will be paid by the people.
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Tariffs are taxes for the Americans on their groceries and their medication.
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Tariffs will just fuel inflation.
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Exactly the opposite of what we wanted to achieve.
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American factories will pay more for components that are produced in Europe.
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This will cost jobs.
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It will create a bureaucratic monster of new customs procedures.
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And today nobody needs that, neither in the United States nor in Europe.
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So, our strategy builds on three pillars.
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First, we are open to negotiations.
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We will approach these negotiations from a position of strength.
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Europe holds a lot of cards.
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From trade to technology to the size of our market.
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But this strength is also built on our readiness to take firm countermeasures if necessary.
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All instruments are on the table.
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Second, we will keep diversifying our trade with other partners.
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You mentioned it, Antonio.
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Our hallmark is not only that we are the biggest market in the world.
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But that we are reliable and predictable, we honor our commitments.
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And that is exactly what our partners are looking for today.
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And my third point, honorable members, is.
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Unchain the single market.
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There are too many obstacles that tie down our businesses.
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And we have to do our homework.
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Mario Draghi is right when he says, high internal barriers are far more damaging for growth than any tariff.
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End of quote.
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The single market, as I said, was born to tear down barriers between the countries.
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To erase customs and duties.
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And to make business inside the European Union as easy as possible.
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So, we must go back to that idea and fulfill it.
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It must be easier for SMEs to sell the same product in all member states.
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Instead of relabeling it 27 times to comply with national laws.
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It must be easier for professionals to work across borders.
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Instead of getting stuck with different national bureaucracies.
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It must be easier for tech companies to launch a new service all across Europe.
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Instead of dealing with 27 different procedures.
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I know, honorable members, that the European Parliament has always worked hard to complete the single market.
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Now we have the generational opportunity to get it done.
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We have a strong consensus on the Draghi and Letta report among all of us.
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We have put ambitious proposals on the table, you know it from the savings and investment union to ensure that people get a better return on their money.
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But also that the companies find the finances they need in Europe.
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To our omnibus simplification packages or our union of skills.
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And more will come, including the 28th legal regime for innovative companies.
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According to the IMF, Europe's internal market barriers, internal, are equivalent to a tariff of 45% for manufacturing.
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And 100% for services.
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This simply cannot be.
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This must change now.
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This is why I have tasked EVP Sefcovic to come up with concrete and bold proposals next month.
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To remove most of these barriers and prevent new ones.
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These reforms are long overdue.
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And now they have become more urgent than ever.
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We all know, in a stormy global economy.
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The single market is our safe harbor.
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It's now 30 years since Jacques Delors laid its first stone.
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So, it's time to finish the job.
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Thank you very much and long live Europe.
Topics:EuropeUS tariffsprotectionismsingle markettrade retaliationglobal economytrade negotiationseconomic stabilityinternal barriersEuropean Union
