Mixed reactions and economic concerns emerge across EU countries as they confront potential fallout from the tariffs.
**Europe Braces for Potential Trade War with U.S. Amidst Trump's Tariff Announcement**
**Europe Braces for Potential Trade War with U.S. Amidst Trump's Tariff Announcement**
European leaders seek negotiations while preparing for retaliatory measures against proposed U.S. tariffs.
Europe's leaders are gearing up for the likely consequences of U.S. President Donald Trump's recent announcement of a blanket 20% tariff, a move described as a "catastrophe" by French Prime Minister François Bayrou. EU Commission President Ursula von der Leyen echoed this sentiment, warning of dire global repercussions for millions of people. The EU is preparing to respond on behalf of its 27 member countries, showing readiness to negotiate but also poised to counter the tariffs.
EU Trade Commissioner Maros Sefcovic is set to engage his U.S. counterparts soon, emphasizing a "calibrated" and unified approach to the crisis. Leaders from various countries are scrambling to mitigate the impact of the tariffs. Italy's Prime Minister Giorgia Meloni convened an emergency summit with ministers and business leaders, concerned for its €1.6 billion agrifood and €2 billion wine export markets.
Spanish Prime Minister Pedro Sánchez criticized Trump’s claim that the EU imposes high tariffs, defending that the real figure is only 3%. He argued that the trade war would have broader ramifications, especially for the U.S. itself. The Spanish Chamber of Commerce reported potential losses of 14% in exports, prompting Sánchez to announce a €14.1 billion assistance plan for businesses to diversify their markets.
Economic forecasts suggest Slovakia could face a staggering 2.5% decrease in output due to its heavy reliance on industrial exports, with Poland's Prime Minister Donald Tusk predicting a 0.4% decline. France's wine industry alone could see losses exceeding €1 billion. Italian wineries are already feeling the impact, with many halting exports and awaiting clarity on countermeasures from the EU.
Investors reacted negatively to the tariff announcement, causing significant drops in vulnerable companies like Adidas. Small businesses are equally at risk, with producers such as Rocco Mangiaracina, who recently began exporting olive oil to the U.S., revealing that the tariffs directly affect their budding market.
Germany described the tariffs as an unprecedented attack on global trade, with acting Chancellor Olaf Scholz highlighting Europe’s market power. While EU member states are united in condemnation, some, like Hungary’s Foreign Minister, have criticized EU leadership for its handling of the situation.
The EU has already proposed an initial set of tariffs worth €26 billion that may take effect from mid-April, in reaction to previous U.S. tariffs imposed on EU steel and aluminum. Further discussions are underway for more extensive countermeasures that may include targeting U.S. digital services as well.
Despite the challenges posed by the tariffs, European leaders emphasize the importance of negotiations. However, as the situation evolves, the possibility of a broader trade conflict lingers, with significant implications for businesses and economies on both sides of the Atlantic.
EU Trade Commissioner Maros Sefcovic is set to engage his U.S. counterparts soon, emphasizing a "calibrated" and unified approach to the crisis. Leaders from various countries are scrambling to mitigate the impact of the tariffs. Italy's Prime Minister Giorgia Meloni convened an emergency summit with ministers and business leaders, concerned for its €1.6 billion agrifood and €2 billion wine export markets.
Spanish Prime Minister Pedro Sánchez criticized Trump’s claim that the EU imposes high tariffs, defending that the real figure is only 3%. He argued that the trade war would have broader ramifications, especially for the U.S. itself. The Spanish Chamber of Commerce reported potential losses of 14% in exports, prompting Sánchez to announce a €14.1 billion assistance plan for businesses to diversify their markets.
Economic forecasts suggest Slovakia could face a staggering 2.5% decrease in output due to its heavy reliance on industrial exports, with Poland's Prime Minister Donald Tusk predicting a 0.4% decline. France's wine industry alone could see losses exceeding €1 billion. Italian wineries are already feeling the impact, with many halting exports and awaiting clarity on countermeasures from the EU.
Investors reacted negatively to the tariff announcement, causing significant drops in vulnerable companies like Adidas. Small businesses are equally at risk, with producers such as Rocco Mangiaracina, who recently began exporting olive oil to the U.S., revealing that the tariffs directly affect their budding market.
Germany described the tariffs as an unprecedented attack on global trade, with acting Chancellor Olaf Scholz highlighting Europe’s market power. While EU member states are united in condemnation, some, like Hungary’s Foreign Minister, have criticized EU leadership for its handling of the situation.
The EU has already proposed an initial set of tariffs worth €26 billion that may take effect from mid-April, in reaction to previous U.S. tariffs imposed on EU steel and aluminum. Further discussions are underway for more extensive countermeasures that may include targeting U.S. digital services as well.
Despite the challenges posed by the tariffs, European leaders emphasize the importance of negotiations. However, as the situation evolves, the possibility of a broader trade conflict lingers, with significant implications for businesses and economies on both sides of the Atlantic.
