European officials need to manage their expectations in diplomatic negotiations against a more volatile geopolitical environment, European Commission President Ursula von der Leyen said in reference to a possible trade war between the bloc and the U.S.
“This is a world where we can no longer take much for granted including the rules and norms that were built over the past 70 years,” she said at a conference on Tuesday, adding that “in this hot-headed world, Europe’s best approach is to remain level-headed.”
Von der Leyen–one of the European Union’s most powerful officials–said negotiators need a clear and reasonable idea of the world as it really is. “Don’t think in terms of pessimism or even optimism, think about in terms of what is possible,” she said.
The commission president said that no other economies in the world are as integrated in the same way as the EU and the U.S.
“We want to make it work, and not only because of our historic ties, but because it is simply smart business,” she said. “So our first priority is now to work on the many areas where the interests converge.”
Her comments come after U.S. President Trump signed an executive order on Feb. 1 placing extra 10% tariffs on all Chinese imports, as well as threatening measures against Canada and Mexico before postponing them as both countries agreed to boost border security. Trump blasted the U.S.’s trade relationship with the EU over the weekend, calling it an “atrocity” and complaining that the EU exports far more to the U.S. than it imports. He said fresh tariffs on the bloc will definitely happen.
“We know that there will be an increased use of threats and economic coercion tools such as sanctions, export controls and tariffs,” commission chief von der Leyen said. “Europe will safeguard its economic and national security, but it is important that we strike the right balance,” she said.
Write to Edith Hancock at edith.hancock@wsj.com
