Ursula von der Leyen Warns Against Global Race to the Bottom

European Commission President Ursula von der Leyen warned of a 'global race to the bottom' using economic tools like sanctions and tariffs. She emphasized the need for innovation and cooperation to maintain global economic bonds, amid U.S. President Trump's trade policy stance.

European Commission President Ursula von der Leyen has raised alarms about the potential consequences of a 'global race to the bottom' sparked by aggressive economic policies. Speaking at the World Economic Forum, she underlined the increasing use of sanctions, export controls, and tariffs in international economic competition.

Von der Leyen stressed that while economic and national security need protection, innovation must not be hindered. She advocated for cooperation to prevent the fragmentation of global economic ties. She stated, 'To avoid a global race to the bottom, we must modernize the rules to sustain mutual gain for our citizens.'

Her comments came in light of President Trump's recent remarks on reversing the U.S. trade deficit with the EU through tariffs or energy exports, highlighting the complex landscape of transatlantic trade relations.

(With inputs from agencies.)