The European Union is preparing a response to new import tariffs imposed by US President Donald Trump, as France's Emmanuel Macron convenes leaders of the hardest hit sectors for a meeting later Thursday.
Calling the US tariffs a “major blow to the world economy", EU chief Ursula von der Leyen said Europe is “prepared to respond".
Trump on Wednesday announced a 10 percent minimum tariff on most goods entering the US, and a higher 20 percent rate for imports from the EU.
He described it as "Liberation Day", because it was a "declaration of economic independence".
The 10 percent "baseline" tariff comes into effect on Saturday, 5 April, while the elevated rates will take effect on 9 April.
Trump said elevated rates were being imposed on countries “that treat us badly”. Some of the worst hit are in Asia: 49 percent on Cambodia and 46 percent on Vietnam, with Chinese goods taxed at 34 percent.
Europe hits back
"We are already finalising the first package of countermeasures in response to tariffs on steel," von der Leyen said in a statement, referring to plans to impose counter tariffs on up to €26 billion of US goods this month in response to US steel and aluminium tariffs that took effect on 12 March.
"We’re now preparing for further countermeasures to protect our interests and our businesses if negotiations fail."
Detailing a two-stage response by the EU, French government spokesperson Sophie Primas told RTL: "We have a whole range of tools and we are ready for this trade war."
The EU will then target "all products and services", including online services "which are not taxed today but could be."
German Chancellor Olaf Scholz said the tariffs were "fundamentally wrong" and warned they would also put a strain on the US's own exports.
At a press conference in Berlin, he pointed to complex supply chains: "Sometimes there are so many supply chain dependencies that some things are sent back and forth 100 times. You cannot simply stop that."
He added: "Even if Europe did nothing (in response), it would lead to economic difficulties in the US."
'Catastrophe'
French Prime Minister François Bayrou said Thursday the tariffs were a "catastrophe" for the world.
"It's an immense difficulty for Europe. I think it's also a catastrophe for the United States and for US citizens," he told reporters after a meeting in the French Senate.
"We are pretty sure that we are indeed going to see an adverse effect on production," Primas said, about the impacts on French companies, in particular the wine and spirits industry.
The French wine industry, which had been worried Trump's threat to impose a 200 percent tariff on imported wine and spirits, is so far not targeted by a specific tax.
Nevertheless, the industry is expecting sales to drop at least 20 percent in the United States, the French wine and spirits exporters group FEVS told the Reuters news agency.
Later Thursday French President Emmanuel Macron will convene all representatives of business sectors hit by the new tariffs, the French presidency said.
(with newswires)
