Dutch urge restraint over US tariff response ahead of EU meeting

The Dutch government will urge the European Commission to make a measured response to president Donald Trump’s import tariffs, prime minister Dick Schoof said on Friday afternoon.

Speaking to reporters at the weekly post-cabinet press conference, Schoof said he is in contact with his counterparts in other countries and with commission president Ursula von der Leyen.

“There is broad agreement that we should not end up going down a tunnel of action and reaction,” Schoof said. “But we are prepared to take steps in order to protect our economic interests.

EU ministers are meeting in Brussels on Monday to discuss strategy.

One of Europe’s concerns is that China may flood the European market with cheap products following the announcement of 54% tariffs on Chinese goods. “That might be attractive for consumers in the short term, but it is not a good thing for EU companies,” he said.

Dutch finance minister Eelco Heinen told broadcaster NOS he is pessimistic about the risk of a trade war and would not rule out a recession. “It is going to have an impact on the Netherlands at the expense of economic growth,” he said.

Economic affairs minister Dirk Beljaarts said the import taxes could shave 0.1 or 0.2 percentage point off the projected 1.7% growth figure for this year.

“You won’t notice it immediately when doing the shopping, but we mustn’t dismiss it either,” he said. The cabinet, he added, is working on a range of scenarios to assess which sectors will be hit hardest.

The US is the Netherlands’ biggest trading partner outside the EU.

Exports

National statistics agency CBS said in February that the Netherlands exported goods worth €28.2 billion to the US in the first three months of this year, while the US exported goods worth €44.4 billion to the Dutch, taking the trade deficit to €16.3 billion.

The deficit is twice as high as a year ago and is largely due to the import of US crude oil and natural gas.

The Netherlands has had a structural trade deficit with the US for years, the CBS said, adding that oil and gas imports have become more important since Russia invaded Ukraine in 2022.