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Europe

EU says Trump’s tariffs ‘major blow to the world economy’ but remains open to talks despite U.S. escalation

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April 3, 2025, 4:28 AM ET
"There seems to be no order in the disorder. No clear path through the complexity and chaos that is being created as all U.S. trading partners are hit,' said president of the European Commission, Ursula von der Leyen.
"There seems to be no order in the disorder. No clear path through the complexity and chaos that is being created as all U.S. trading partners are hit,' said president of the European Commission, Ursula von der Leyen.Nicolas Economou/NurPhoto via Getty Images

European leaders hit out Thursday against sweeping new US tariffs, with the EU saying it was ready to respond with countermeasures while opening the door for last-ditch negotiations.

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US President Donald Trump on Wednesday announced a 20 percent tariff for the European Union as part of sweeping charges on imports that have sparked fears of a global trade war.

Trump has previously imposed tariffs on European steel and aluminium imports as well as cars and auto parts.

The 27-member bloc’s chief Ursula von der Leyen called the levies a “major blow to the world economy” and said Brussels was “preparing for further countermeasures”.

“I deeply regret this choice,” von der Leyen said on a visit to Uzbekistan.

“There seems to be no order in the disorder. No clear path through the complexity and chaos that is being created as all US trading partners are hit.”

But she said it was “not too late to address concerns through negotiations”, aiming for a cool-headed response to the tariff threat facing the bloc.

Germany backed the efforts for a “negotiated solution” but economy minister Robert Habeck said the EU was ready to give a “balanced, clear and determined response” if talks fail.

In France, President Emmanuel Macron is due to meet heads of sectors hit by the tariffs, and government spokeswoman Sophie Primas said the bloc was “ready for a trade war” and plans to “attack online services”.

Britain — no longer an EU member and a staunch US ally — said it hoped an economic deal would “mitigate” the impact of the 10 percent tariff Trump is imposing on the UK.

Prime Minister Keir Starmer told business leaders that “clearly there would be an economic impact” but that the government would “fight for the best deal”.

Italy’s Prime Minister Giorgia Meloni called the new tariffs “wrong” and said the bloc would do all it can “to work for a deal with the United States, aiming to prevent a trade war that would inevitably weaken the West in favour of other global actors”.

Her foreign minister, Antonio Tajani, said he would meet with EU trade chief Maros Sefcovic in Brussels on Thursday to discuss a response “based on a pragmatic approach, based on dialogue”.

After Switzerland was hit with 31 percent tariffs, President Karin Keller-Sutter said the government would quickly decide on the next steps, adding that respect for international law and free trade were “fundamental”.

Polish Prime Minister Donald Tusk said friendship with the United States meant partnership, and therefore “really and truly reciprocal tariffs” would be necessary.

There are also concerns in Europe that Trump’s higher customs duties will lead to a flood of cheap goods from other countries, especially China.

‘Do not retaliate’

Bernd Lange, who leads the EU parliament’s trade committee, slammed Trump’s “unjustified, illegal and disproportionate measures”.

European industry groups called Trump’s move counterproductive for nations and customers alike.

The German Automotive Industry Association said the tariffs would “only create losers” and urged the EU to act “with necessary force, while continuing to signal its willingness to negotiate”.

The Association of the German Chemical Industry called on the EU to “keep a cool head,” warning that “a spiral of escalation would only increase the damage”.

The EU had already been hit by several US tariff announcements since Trump returned to office in January, including a 25 percent levy on auto imports that came into force on Thursday.

The bloc’s producers were also affected by a 25 percent US tariff on steel and aluminium from around the world — to which Brussels has already promised countermeasures to begin in mid-April.

US Treasury Secretary Scott Bessent warned countries not to retaliate.

“Sit back, take it in,” he told Fox News. “Because if you retaliate, there will be escalation”.

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