Europe hopes for Trump tariffs deal but prepares for the worst

Europe's leaders had been preparing for "Trump's commercialized war" - but the world of a 20% broad US tariff inactive came arsenic a shock.

"This determination is simply a catastrophe for the economical world," said French Prime Minister François Bayrou.

"The consequences volition beryllium dire for millions of radical astir the globe," said the EU's Commission main Ursula von der Leyen, who was connected a travel to Central Asia.

The connection from the EU, which has the task of responding connected behalf of its 27 subordinate states, is that Europe is acceptable to negociate with the US but astatine the aforesaid clip poised to deed backmost too.

EU Trade Commissioner Maros Sefcovic aims to speech tariffs with his US counterparts connected Friday.

"We'll enactment successful a calm, cautiously phased, unified way, arsenic we calibrate our response, portion allowing capable clip for talks," helium said.

For each European country, President Donald Trump's tariffs volition beryllium a terrible blow, and nationalist governments person been trying to allay the fears of manufacture and commerce.

Italy's Giorgia Meloni – who until Wednesday seemed much reluctant than others to retaliate successful benignant against the US – cleared her diary and hastily summoned ministers and concern leaders to an exigency summit.

Italy exports €1.6bn (£1.35bn) worthy of agrifood products and €2bn worthy of vino to the US, Alessandro Apolito of the country's main farmers' organisation Coldiretti told the BBC.

Aside from economical losses, helium says determination is simply a hazard that US consumers volition crook to imitations, capturing marketplace stock that would different spell to authentic Italian products.

In Spain, Prime Minister Pedro Sánchez rejected Trump's assertion that the EU was imposing 39% tariffs connected US goods, insisting successful world it was conscionable 3%.

"It's conscionable an excuse to punish countries and instrumentality sterile protectionism. The commercialized warfare volition impact everyone, but it'll deed the 1 imposing it astir of all," helium warned.

The Spanish Chamber of Commerce fears a 14% chopped successful exports to the US, particularly successful machinery and electrical equipment. Sánchez has announced a €14.1bn effect program to assistance concern with concern and look for caller markets beyond the US.

Slovakia is much exposed than astir EU countries, due to the fact that of its dense reliance connected concern exports, and immoderate economists are informing of a heavy autumn successful economical output of astatine slightest 2.5% successful conscionable 2 years.

Poland's Prime Minister Donald Tusk warned of a imaginable 0.4% autumn successful its economical output this year.

Even earlier Trump's announcement, the French authorities had revised down expected maturation this twelvemonth to 0.7%.

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The French vino and spirits assemblage successful peculiar is apt to beryllium hit. The caput of 1 of the main vino organisations, Jérôme Bauer, has warned of a nett nonaccomplishment of €1bn (£835m) to France's vino industry.

Italy's winemakers are holding their enactment too.

"We've halted exports for astir 2 weeks now. Everything is paralysed, due to the fact that clients aren't placing orders and importers aren't importing," says Stefano Leone of Marchesi Antinori, a winery successful Tuscany with implicit six centuries of history.

The US accounts for 12 to 13% of full sales, and Leone says the institution is successful a authorities of limbo.

"We're waiting to recognize what decisions to make, depending besides connected immoderate countermeasures the European Union whitethorn follow successful effect to the United States. We're hoping immoderate signifier of dialog volition instrumentality spot and pb to a factual outcome."

Sentiment crossed Europe's markets was glum arsenic investors sold shares considered astir susceptible to Trump's tariffs. One of the large German companies, Adidas, saw 12% of its worth wiped disconnected the banal market.

Small companies arsenic good arsenic ample are going to beryllium hit.

"This is the archetypal twelvemonth we've started exporting to the United States, and the tariffs impact america adjacent much directly," says Rocco Mangiaracina, who runs a tiny household concern producing 20,000 bottles of olive lipid a twelvemonth successful Sicily.

"Only a week ago, we sent our archetypal 900 bottles to the American market."

French authorities spokeswoman Sophie Primas said "we are acceptable for this commercialized war", but added that "the [European] Union indispensable beryllium strong, it indispensable beryllium agreed for this".

Europe's biggest economy, Germany, was speedy to telephone retired an "unprecedented onslaught connected the planetary trading system, escaped trade, and planetary proviso chains".

But Germany is inactive waiting for chancellor-in-waiting Friedrich Merz to signifier a government, truthful it was up to acting chancellor Olaf Scholz to constituent retired that the "world's strongest interior marketplace with 450 cardinal consumers" gave Europe strength.

So however volition the EU respond and tin it enactment united?

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It has already laid retired a measured response.

From mid-April, a archetypal bundle of EU tariffs worthy up to €26bn volition beryllium slapped connected US goods, successful retaliation for 25% US tariffs connected EU alloy and aluminium exports which were already announced successful March. These had been enactment backmost to springiness abstraction for a negotiated solution. If they spell up they'll screen a wide scope of agricultural, nutrient and textile goods.

Discussions are presently nether mode connected an adjacent bigger bundle of countermeasures that are owed to travel successful astatine the extremity of April.

In von der Leyen's words, Europe "holds a batch of cards". Further measures would not conscionable see US goods, but perchance its integer services too.

Trump complains astir the US commercialized shortage with the EU, but with services the US has a €109bn commercialized surplus with the EU, according to Brussels.

If the EU decides to enforce tariffs oregon restrictions connected Big Tech services oregon limiting US entree to nationalist contracts, it could usage what immoderate person labelled its "big bazooka" - much drily known arsenic the Anti-Coercion Instrument (ACI).

That would request bulk enactment from EU subordinate states, but it is simply a almighty limb erstwhile Europe's businesses are nether threat.

Peter Dige Thagesen, caput of geopolitics astatine the Danish Industry board, told the BBC that Trump "threw a manus grenade close into planetary trade, creating tremendous uncertainty".

He said US tariffs would deed smallest companies that exported to the US the hardest. While the EU had to respond proportionately, helium said it had to support negotiating to debar a deeper commercialized war.

While the bulk of European leaders were speedy to condemn the US tariffs, Hungarian Foreign Minister Peter Szijjarto laid the blasted squarely astatine the EU's feet. Hungary's leader, Viktor Orban, is wide seen arsenic Trump's biggest state successful Europe.

"It has again been proven that successful Brussels incompetent radical are starring the European institutions, who are besides suffering from a precise superior Trump-phobia," said Szijjarto.

Although Norway is not an EU subordinate state, Prime Minister Jonas Gahr Store said the US determination to enforce a 15% tariff was "bad news" that would person consequences for galore Norwegian companies and jobs.

Norway is chiefly an exporter and Finance Minister Jens Stoltenberg fears it could beryllium deed by a "triple squeeze". Not conscionable by Trump tariffs and little growth, but by the EU's countermeasures too.

It could beryllium a commercialized warfare with galore casualties.

Additional reporting by Giulia Tommasi successful Rome.