Trump lashes out at EU, calling it ‘nastier than China’ amid tariff war tensions

U.S. President Donald Trump stepped up his trade rhetoric by declaring that the European Union (EU) is "nastier" than China.

The remarks, made during a speech at the White House, came hours after the United States agreed to a 90-day truce on tariffs with Beijing, and were accompanied by an announcement on measures to reduce drug prices in the country.

Trump sharply criticized the EU, accusing it of unfair trade practices. “The European Union is in many ways nastier than China, OK, we just started with them,” he said.

“We have all the cards. They treated us very unfairly. They sell us 13m cars. We sell them none. They sell us their agricultural products. We sell them for virtually none. They don’t take our products. That gives us all the cards. And it’s very unfair.”

The Republican suggested that the European bloc should pay more for drugs to subsidize lower prices in the United States arguing that Americans have been funding foreign health systems.

The president signed an executive order giving the Health Department, led by Robert F. Kennedy Jr., a 30-day deadline to negotiate lower prices with drugmakers.

If no agreement is reached, a new regulation will link drug prices in the United States to the lowest price paid in other countries.

Trump claimed that this measure will reduce prescription drug costs "almost immediately" by 50% to 90%. "Big Pharma will either abide by this principle voluntarily or we will use the power of the federal government to ensure that we are paying the same price as other countries,” he assured.

He further specifically singled out the EU for pressuring pharmaceuticals to reduce their prices, calling its approach "brutal." "The European Union has been brutal, brutal. And the drug companies actually told me stories. It was just brutal how they forced them," he said.

According to the president, all countries "should pay the same price" for drugs, a stance he said would correct the alleged unfairness of Americans subsidizing patients in other nations with higher prices.

Market reactions

Shares of U.S. drugmakers such as Eli Lilly, Pfizer, Bristol-Myers Squibb and Merck fell before the New York Stock Exchange opened, as did those of European companies such as Novo Nordisk, Sanofi and AstraZeneca.

However, U.S. companies recovered some of the losses following the announcement, relieved by the perception that the impact could be less than expected.

Trump also took the opportunity to celebrate the recent trade truce with China, agreed upon in Geneva, which reduced tariffs on Chinese exports from 145% to 30% and applied a 10% rate on U.S. goods.

However, he warned that, if a broader agreement is not reached in the next 90 days, tariffs could rise further. "I'm confident we will reach a more comprehensive trade deal with China," he said, adding that he plans to speak with President Xi Jinping later in the week.

Trump's statements on the EU add to a series of previous criticisms. In February, the president claimed that the EU "was formed to screw" the United States and promised 25% tariffs on autos and other products.

More recently, following the announcement of 20% tariffs on the EU on April 2, Trump accused the bloc of "frauding" the United States by claiming it charges 39% in tariffs on U.S. products, a figure the European Commission denied, clarifying that the average tariff applied is only 1%.

The EU responds

The EU, for its part, has vowed to respond strongly to Trump's tariff policies.

The president of the European Commission, Ursula von der Leyen, has defended "fair and rules-based trade" and has warned that the bloc will consider retaliatory measures, including tariffs on U.S. products such as whiskey and motorcycles, similar to those applied in 2018.