The European Union has extended a hand to the United States, urging cooperation to avoid a trade conflict that could harm both economies and the global economy. In a speech at the World Economic Forum in Davos, Switzerland, European Commission President Ursula von der Leyen warned of the need for “global cooperation” and “modernizing the rules” to ensure mutual gain.
Von der Leyen’s comments come as US President Donald Trump signals his intention to reverse the US trade deficit with the EU. However, German Chancellor Olaf Scholz expressed cautious optimism after meeting with Trump’s administration, saying that Germany values its alliance with the US.
The EU is prepared to negotiate with the US, but von der Leyen emphasized the need to uphold European values and principles. She stated that the EU will engage in constructive dialogue with China and support global agreements such as the Paris Climate Accord.
With trade volumes between the EU and the US reaching $1.55 trillion, representing 30% of global trade, von der Leyen stressed the importance of cooperation to avoid a “global race to the bottom.” The EU’s stance is seen as a pragmatic approach, aiming to protect interests while upholding values.
Source: https://www.reuters.com/world/eus-von-der-leyen-says-need-work-together-avoid-global-race-bottom-2025-01-21