World economic system will ‘massively endure’ from Donald Trump tariffs, Ursula von der Leyen warns – Europe stay | World information
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Morning opening: A damaged stick
Jakub Krupa
European Fee president Ursula von der Leyen warned this morning that the worldwide economic system “will massively endure” on account of tariffs imposed by US president Donald Trump final night time, as she mentioned the EU was “ready to reply.”
Regardless of Trump’s direct assault on “pathetic” EU as he imposed 20% tariffs on the bloc, von der Leyen nonetheless expressed hopes that the connection might “transfer from confrontation to negotiation,” as she warned “there appears to be no order in dysfunction.”
But it surely wasn’t instantly apparent that there was any real prospect of that taking place.
As an alternative the EU and the person member states are actually scrambling to think about the best way to handle the scenario.
French president Emmanuel Macron has referred to as an emergency assembly with sectors affected by Trump’s tariffs this afternoon.
German financial each day Handelsblatt revealed new estimates this morning that the US tariffs – together with 25% on automobile imports – might price German carmakers BMW, Mercedes and Volkswagen as a lot as €11 bn given Germany is the most important EU automobile exporter to the US. For perspective, it’s just below a 3rd of the whole worth of German automotive exports to the US at €36.8 bn.
However the fear just isn’t solely in regards to the instant impression, however the extra long run penalties of final night time’s resolution.
Addressing Europeans immediately, von der Leyen mentioned “I do know that a lot of you’re feeling let down by our oldest ally,” as she harassed the necessity to consider what’s subsequent.
Or as Moritz Schularick, president of the Kiel Institute for the World Financial system, put it to Handelsblatt:
“There may be this memorable image of a stick that you could bend and that comes again time and again. However sooner or later, if you happen to bend an excessive amount of, the stick breaks.
I imagine that by way of belief in america, one thing has damaged down in current weeks that won’t come again so shortly.”
It’s Thursday, 3 April 2025, it’s Jakub Krupa right here, and that is Europe Dwell.
Good morning. Fasten your seatbelts, it’s going to be a energetic one.
Key occasions
EU’s choices on responding to Trump’s tariffs
Jennifer Rankin
The EU has some choices when contemplating its response to in a single day bulletins, together with retaliating with tariffs on US items and companies and forming nearer ties with different international locations.
The bloc has already rejected one attainable possibility: fold your playing cards. However vowing retaliation is just the beginning.
The questions are about what response the EU can have, how shortly it may be marshalled and whether or not divisions between member states will undermine the powerful discuss.
The EU response will rely upon how tightly its 27 member states line up behind a typical technique in a commerce warfare that would set off financial turmoil and job losses in Europe. An early indication ought to come on Monday when EU commerce ministers meet to debate the retaliation deliberate for this month and different measures.
Nerves are constructing. France is frightened in regards to the fallout on its wines and spirits trade; Dublin fears an exodus of US multinationals headquartered in Eire; and the Italian prime minister, Giorgia Meloni, has mentioned the bloc shouldn’t act on impulse whereas the nationwide trade group Confindustria has referred to as for negotiations with the White Home.
Forging a typical line might be crucial to new types of commerce retaliation: for instance, solely a weighted majority of EU international locations can resolve whether or not the bloc is dealing with coercion from the US. That might be an consequence virtually nobody imagined a decade in the past.
German enterprise group denounces ‘unprecedented assault’ on international commerce
Lisa O’Carroll
The German Federation of Enterprise, BDI, has denounced Trump’s tariffs as an “unprecedented assault” on international commerce.
In an announcement issued this morning, it warned that “the European economic system should not grow to be a plaything of geopolitical pursuits” and referred to as for a united response to the 20% tax the 27 international locations now face.
“The introduced tariffs are an unprecedented assault on the worldwide buying and selling system, free commerce, and international provide chains. The rationale for this protectionist escalation is incomprehensible. It threatens our export-oriented firms and jeopardizes prosperity, stability, jobs, innovation, and funding worldwide.
The European Union can solely act as a united entrance. This is applicable to the 27 member states in addition to throughout sectors. The EU has its personal devices for an efficient counter-reaction, which it could actually use decisively. We help the Fee’s technique of remaining keen to barter, conscious of Europe’s strengths, and responding flexibly to potential presents.
German trade has at all times relied on honest competitors, open markets, and cooperative relations with america. The EU should now strengthen its alliances with different main buying and selling companions and will coordinate its response with them. A coordinated response can also be essential to counter diversion results in worldwide commerce.”
Danish prime minister visits Greenland
Elsewhere, Danish prime minister Mette Frederiksen continues her three-day journey to Greenland amid escalating tensions with the US over the longer term standing of the island.
Arriving yesterday, she mentioned “it’s clear that with the strain placed on Greenland by the People, by way of sovereignty, borders and the longer term, we have to keep united.”
“I’ve however one want and that’s to do all that I can to handle this marvellous nation and to help it at a tough time,” Frederiksen mentioned.
She had a dinner with the brand new Greenlandic prime minister, Jens-Frederik Nielsen, final night time, and at present will get on with a full programme of conferences prone to contact on the longer term form of Danish-Greenlandic relations and financial cooperation.
Frederiksen additionally met with the outgoing prime minister Múte B. Egede who will stay a outstanding determine within the new authorities shaped after final month’s snap elections in Greenland.
The talks might be a primary take a look at for Nielsen’s new administration on whether or not it could actually formulate new calls for to Copenhagen and get issues accomplished within the face of US curiosity within the island.
Frederiksen’s go to comes simply days after a extremely controversial journey by US vice-president JD Vance, who came to visit to the US Pituffik Area Base solely to immediately criticise Denmark for “not doing a great job at preserving Greenland protected,” and accusing it of “underinvesting within the individuals of Greenland and … within the safety structure” of the island.
Earlier this week, Washington Put up reported that the Trump administration was finding out the potential prices concerned ought to the US reach its plans of taking management over Greenland, together with whether or not it might put collectively a extra engaging monetary package deal to compete with Denmark.
The paper mentioned that officers have been additionally what income to the US Treasury may very well be gained from the island’s pure sources.
I’ll control what comes out of Frederiksen’s conferences.
European inventory markets sliding in response to Trump’s tariffs
European inventory markets are actually open and so they’re reacting precisely as you’ll count on them to.
The pan-European Stoxx 600 index has fallen 1.5% in the beginning of buying and selling, to its lowest stage in over two months.
Germany’s DAX fell virtually 2.5% in the beginning of tading in Frankfurt, whereas in Paris the CAC 40 is down 2.2% and Spain’s IBEX misplaced 1.5%.
You may comply with all the newest enterprise response right here:
Norway involved about ‘very severe’ tariffs, hopes to carry additional talks with US, prime minister says
Norwegian prime minister Jonas Gahr Støre expressed alarm over “dangerous information” on US tariffs warning they have been “very severe,” with Norway hit by a 15% levy on its items imported to the US.
However Støre informed public broadcaster NRK that “there may be a gap for negotiations right here, the People say, and we’ll use that in each attainable method that we will,” Reuters reported.
Støre additionally mentioned he would journey to Brussels on Monday to satisfy with senior EU officers, together with European Fee president Ursula von der Leyen to debate additional steps.
UK prime minister highlights want for ‘cool and calm heads’ after Trump’s tariffs
UK prime minister Keir Starmer informed enterprise chiefs that “clearly there might be an financial impression” from Donald Trump’s tariffs, as he insisted the federal government would react with “cool and calm heads,” PA information company reported.
He mentioned “nothing is off the desk” in terms of the UK response.
Starmer mentioned the federal government will now concentrate on making selections “guided solely by our nationwide curiosity” and on “placing cash within the pockets of working individuals,” as he harassed “one of many nice strengths of this nation is our skill to maintain a cool head.”
Listed below are some additional quotes from Starmer, by way of PA:
“In the present day marks a brand new stage in our preparation. We have now a spread of levers at our disposal and we’ll proceed our work with companies throughout the nation to debate their evaluation of the choices.”
“Our intention stays to safe a deal, however nothing is off the desk.”
“We should rise to this problem and that’s the reason I’ve instructed my workforce to maneuver additional and sooner on the adjustments I imagine will make our economic system stronger and extra resilient.”
“As a result of this Authorities will do every thing essential to defend the UK’s nationwide curiosity, every thing needed to supply the muse of safety that working individuals have to get on with their lives.”
“That’s how we’ve got acted and the way we’ll proceed to behave: with pragmatism, cool and calm heads, centered on our nationwide safety.”
Our political editor, Pippa Crerar, famous that Downing Road, which had been anticipating a 20% price to be imposed on the UK, expressed aid to have escaped the upper price with decrease, 10% tariffs.
Keir Starmer’s extra conciliatory method to the Trump administration appeared to have paid off, she mentioned.
European reactions to Trump’s tariffs – spherical up
European Fee president Ursula von der Leyen warned of “dire penalties” for hundreds of thousands of individuals, as she mentioned tariffs would “damage customers around the globe.”
She mentioned there was “no clear path via the complexity and chaos that’s being created as all US buying and selling companions are hit,” however she insisted the EU’s unity “is our power” and the bloc could be ready to reply with calibrated countermeasures.
Outgoing German economic system minister Robert Habeck harassed the necessity for a united EU response, saying the bloc ought to leverage the very fact it has the most important single market on the planet.
“Europe’s power is our power,” he mentioned, including he hoped for “a negotiated answer.”
Italian prime minister Giorgia Meloni referred to as the introduction of US tariffs “incorrect” as she vowed to “do every thing we will to work in the direction of an settlement with america, with the purpose of avoiding a commerce warfare that will inevitably weaken the West in favor of different international gamers.”
“In any case, as at all times, we’ll act within the curiosity of Italy and its economic system, additionally by discussing with different European companions,” she added.
Swedish prime minister Ulf Kristersson mentioned he “deeply regreted” the US resolution, saying “we don’t need rising commerce boundaries” as he lauded the advantages of free commerce.
However he mentioned the federal government was prepared to reply and work with the EU to “take each alternative to reverse these developments.”
“We wish to discover our method again to the trail of commerce and cooperation along with the US,” he harassed.
Irish prime minister Micheál Martin mentioned that tariffs “profit nobody,” as he warned they’re “dangerous for the world economic system, they damage individuals [and] companies.”
“My precedence, and that of the federal government, is to guard Irish jobs and the Irish economic system, and we’ll work with our firms … to navigate the interval forward,” he mentioned.
He mentioned he would work with EU companions to “get on a negotiation with the US to restrict the injury.”
Martin additionally highlighted “the added worth and the power that Eire has given to so many US firms” based mostly there.
Polish prime minister Donald Tusk posted a quick replace on social media, saying: “Friendship means partnership. Partnership means actually and really reciprocal tariffs. Satisfactory selections are wanted.”
Finnish prime minister Petteri Orpo mentioned the tariff selections have been “regarding,” as he warned “there are not any winners in a commerce warfare.”
“Companies, customers, and financial progress endure. The EU is able to reply and negotiate. We help this effort. Finland is ready as a part of the Union,” he mentioned.
Morning opening: A damaged stick
Jakub Krupa
European Fee president Ursula von der Leyen warned this morning that the worldwide economic system “will massively endure” on account of tariffs imposed by US president Donald Trump final night time, as she mentioned the EU was “ready to reply.”
Regardless of Trump’s direct assault on “pathetic” EU as he imposed 20% tariffs on the bloc, von der Leyen nonetheless expressed hopes that the connection might “transfer from confrontation to negotiation,” as she warned “there appears to be no order in dysfunction.”
But it surely wasn’t instantly apparent that there was any real prospect of that taking place.
As an alternative the EU and the person member states are actually scrambling to think about the best way to handle the scenario.
French president Emmanuel Macron has referred to as an emergency assembly with sectors affected by Trump’s tariffs this afternoon.
German financial each day Handelsblatt revealed new estimates this morning that the US tariffs – together with 25% on automobile imports – might price German carmakers BMW, Mercedes and Volkswagen as a lot as €11 bn given Germany is the most important EU automobile exporter to the US. For perspective, it’s just below a 3rd of the whole worth of German automotive exports to the US at €36.8 bn.
However the fear just isn’t solely in regards to the instant impression, however the extra long run penalties of final night time’s resolution.
Addressing Europeans immediately, von der Leyen mentioned “I do know that a lot of you’re feeling let down by our oldest ally,” as she harassed the necessity to consider what’s subsequent.
Or as Moritz Schularick, president of the Kiel Institute for the World Financial system, put it to Handelsblatt:
“There may be this memorable image of a stick that you could bend and that comes again time and again. However sooner or later, if you happen to bend an excessive amount of, the stick breaks.
I imagine that by way of belief in america, one thing has damaged down in current weeks that won’t come again so shortly.”
It’s Thursday, 3 April 2025, it’s Jakub Krupa right here, and that is Europe Dwell.
Good morning. Fasten your seatbelts, it’s going to be a energetic one.
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