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Europe braces for trade war as trump imposes 20% tariffs

The European Union is reeling from President Trump’s sudden imposition of a 20% blanket tariff on US imports. European Commission President Ursula von der Leyen has condemned the move, calling it a “catastrophe for the economic world.” French Prime Minister François Bayrou echoed this sentiment, warning of “dire consequences” for millions globally.

The EU is adopting a two-pronged approach: negotiating with the US while preparing countermeasures. EU Trade Commissioner Maros Sefcovic aims to discuss tariffs with his US counterparts soon.

Meanwhile, individual EU countries are assessing their exposure to the tariffs.

Countries Most Affected:

Italy: Agrifood and wine exports to the US worth €3.6bn

Spain: Exports to the US, especially machinery and electrical equipment, may decline by 14%

Slovakia: Heavy reliance on industrial exports makes it vulnerable to a deep economic downturn

Poland : Potential 0.4% fall in economic output this year

France: Revised down expected growth this year to 0.7%

The EU has already outlined a measured response, including tariffs worth up to €26bn on US goods from mid-April. Further countermeasures may target US digital services or limit US access to public contracts. As tensions escalate, European businesses hold their breath, hoping for a negotiated solution to avoid a deeper trade war.

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