The European Trade Union Confederation (ETUC) urges the European Union to take decisive and immediate action to protect jobs and production in Europe in light of the threat of 30% tariffs by the US government.
Europe’s economy is already suffering from the negative impacts of the current 10% blanket tariff on all goods and the 25% tariff rate on critical sectors as automotive, steel and aluminium, imposed by the US. The threat of even higher US tariffs on all goods and its potential to drive relocation of production outside Europe must be treated as an emergency situation by the EU institutions.
Analysis by the European Trade Union Institute found that the blanket 20% tariffs would put at least 700.000 jobs at risk in the EU. This is without even considering the higher tariffs imposed on automotive, steel and aluminium. The ECB also estimates that higher US tariffs would cost Europe €160 billion. The effects of a 30% tariffs would be even more dramatic.
The ETUC is calling on the European Commission to intervene as a matter of urgency with concrete, forward-looking measures to safeguard jobs and incomes, in particular:
- The introduction of crisis-response mechanisms to support companies and workers facing tariff increases, including a ‘SURE 2.0’ initiative to protect jobs and production in Europe;
- The suspension of the EU’s economic governance rules to allow member states to adopt economic policies to defend our key industrial and production capacities;
- A permanent investment mechanism with social conditionalities to bridge the public investment gap necessary to create quality jobs and make our economy innovative, autonomous, sustainable, and thriving - in particular for key sectors impacted by trade tensions;
- Stronger social dialogue at EU and national levels to ensure workers’ voices are part of the definition of EU and national responses and industrial policies, and full respect for workers’ information and consultation rights;
- Reinforcing EU internal demand, in particular by increasing wages and promoting collective bargaining. The Commission should proceed with the necessary legislative initiatives to promote quality jobs and to ensure just transitions through anticipation and management of change;
- Be prepared to include measures to control profiteering and if necessary limit increases to prices of essentials, especially food, to ensure people don’t face another cost-of-living crisis.
- The ECB must refrain from increasing interest rates in response to any increases in prices caused by higher tariffs. Instead, a decrease in interest rates will be needed.
As the EU aims to continue and reinforce its investments in sustainable and digital innovation, it must protect the economic backbone of its economy, its workers and industrial and production base. Without targeted support, the risks of job losses, plant closures, and weakened European production capacity will grow.
Europe must not be bullied out of our social model, standards, values and rights. The ETUC supports further trade negotiations with the US to avoid these damaging tariffs. This means the EU must stand up to the bullish approach by the US government and put forward a proposal for a much-needed digital tax. The EU must reject claims that protections for workers and citizens are trade-distorting. They apply to all companies operating in or putting products on the EU market and are not a distortion but safeguards that must be maintained.
The ETUC stands ready to work with EU institutions, employers, and national governments to forge a resilient and inclusive industrial strategy that benefits all Europeans.
ETUC General Secretary Esther Lynch said:
“Workers in Europe cannot be made to pay the price for global trade disputes.
“It is essential that the EU takes immediate action to deliver a strong, coordinated industrial policy and tools to protect jobs and production in Europe, including public investments, targeted support for affected sectors, and a focus on tools to ensure that the green and digital transitions create and protect quality jobs.
“It is key to stand up to bullies that see compromises as weakness. Efforts to appease Donald Trump have been swiftly brushed aside, as Trump continues to demand even more. The EU must not be bullied, but must assert its autonomy, defend its standards and rules and stand up for the working people of Europe.”
