BRUSSELS (Reuters) – European Union finance ministers will discuss on Friday how to tackle the expected blow to Europe’s economic growth from tariffs imposed by the United States on EU goods, the chairman of the meeting Andrzej Domanski wrote in an invitation letter.
Domanski, the finance minister of Poland which holds the rotating presidency of the EU until June, said the ministers should consider tighter integration of the EU’s own internal market as a response.
“Disrupted supply chains and rising costs for companies will affect European growth ratios and currencies,” Domanski wrote ahead of the meeting in Warsaw.
“This will have adverse social consequences, increasing prices for consumers and leaving citizens more vulnerable. We will focus on the broader economic implications … on Friday,” he said.
The European Central Bank forecast last month – before the U.S. announcements on tariffs – that euro zone economic growth would be around 0.9% this year and inflation at 2.3%.
Since then, Washington has imposed 25% tariffs on European steel, aluminium and cars and 20% of almost all other goods.
The U.S. also slapped reciprocal tariffs globally, triggering a market sell-off on fears of inflation, weaker demand and potentially a global recession.
Domanski said that removing EU regulatory barriers hampering trade between the EU’s 27 countries should be the natural response to the U.S. move. The International Monetary Fund has said such regulations were equivalent to an over-40% tariff on goods and 110% on services.
“A key objective of our discussion must also be to demonstrate the unity of the European Union,” he said. “Our strength lies in our solidarity.”
(Reporting by Jan Strupczewski; Editing by Bernadette Baum)
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