Tariffs, tensions, and the cost to workers: CESI on the U.S. trade measures

The announcement of Donald Trump, declaring April 2nd "Liberation Day" and introducing a sweeping 10% tariff on all imports—with 20% specifically targeting goods from the European Union—marks a deeply worrying moment for workers, businesses, and the global economy at large.

Even more troubling is the additional measure targeting Europe's vital automotive sector: a proposed 25% tariff on all foreign-made vehicles. For an industry that supports millions of direct and indirect jobs across Europe and drives innovation, research, and high-value exports, this move is nothing short of a direct blow.

These tariffs threaten to disrupt global trade, fuel inflation, and destabilise labour markets already under pressure from transitions in energy, digitalisation, and supply chain fragmentation.

Consumers on both sides of the Atlantic will pay the price. As companies face higher import costs, these will inevitably be passed on to end-users. For households already struggling with rising living costs, this could further squeeze budgets and reduce demand.

Europe’s export-driven industries are nowespecially vulnerable. Automotive, manufacturing, steel, chemicals, and agriculture sectors—all of which underpin regional economies—may face job cuts, production slowdowns, and lost market share.

Jobs and employment are at risk on both sides of the Atlantic. These tariffs will not only affect European exporters but also U.S. firms and workers who depend on international supply chains and global markets for inputs and sales.

Small and medium-sized enterprises (SMEs) will be particularly hit. Unlike larger multinationals, SMEs lack the flexibility and resources to absorb rising costs, diversify supply chains, or navigate regulatory shifts—putting their survival, and their workers, in jeopardy.

The rise in uncertainty undermines confidence. Businesses need stability to invest and grow. Instead, this move encourages protectionist retaliation, delays in investment decisions, and rising precariousness among workers.

A trade war benefits no one. It fragments cooperation, worsens inequality, and risks plunging parts of the labour market into crisis.

In times of global interdependence, competitiveness should not be pursued by closing off markets or triggering tit-for-tat retaliation. It should be based on innovation, fairness, and smart, sustainable global trade frameworks.

The EU must now stay united and firm, but also pragmatic and forward-looking. A response must protect European workers, avoid escalation, and reinforce global rules-based trade.

At CESI, we stand with those workers most exposed, and we call for robust support measures, ongoing dialogue with social partners, and a commitment to defend both our social model and our economic interests.

Because when trade is used as a political weapon, it is workers who are caught in the crossfire.

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