World economic system will ‘massively suffer’ from Donald Trump tariffs, Ursula von der Leyen warns – Europe stay

German enterprise group denounces ‘unprecedented assault’ on world commerce

Lisa O’Carroll

The German Federation of Enterprise, BDI, has denounced Trump’s tariffs as an “unprecedented attack” on world commerce.

In an announcement issued this morning, it warned that “the European economy must not become a plaything of geopolitical interests” 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 world 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 might use decisively. We assist the Fee’s technique of remaining keen to barter, conscious of Europe’s strengths, and responding flexibly to potential presents.

German business 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.”

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 stated “it is clear that with the pressure put on Greenland by the Americans, in terms of sovereignty, borders and the future, we need to stay united.”

“I have but one wish and that is to do all that I can to take care of this marvellous country and to support it at a difficult time,” Frederiksen stated.

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 more likely 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 distinguished determine within the new authorities shaped after final month’s snap elections in Greenland.

The talks will likely be a primary take a look at for Nielsen’s new administration on whether or not it might formulate new calls for to Copenhagen and get issues carried out 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 House Base solely to immediately criticise Denmark for “not doing a good job at keeping Greenland safe,” and accusing it of “underinvesting in the people of Greenland and … in the security architecture” of the island.

Earlier this week, Washington Submit reported that the Trump administration was learning the potential prices concerned ought to the US achieve its plans of taking management over Greenland, together with whether or not it may put collectively a extra engaging monetary package deal to compete with Denmark.

The paper stated that officers had been additionally what income to the US Treasury might be gained from the island’s pure assets.

I’ll keep watch over what comes out of Frederiksen’s conferences.

European inventory markets are actually open they usually’re reacting precisely as you’ll count on them to.

The pan-European Stoxx 600 index has fallen 1.5% at first of buying and selling, to its lowest stage in over two months.

Germany’s DAX fell virtually 2.5% at first of tading in Frankfurt, whereas in Paris the CAC 40 is down 2.2% and Spain’s IBEX misplaced 1.5%.

You may observe all the newest enterprise response right here:

Norwegian prime minister Jonas Gahr Støre expressed alarm over “bad news” on US tariffs warning they had been “very serious,” with Norway hit by a 15% levy on its items imported to the US.

However Støre advised public broadcaster NRK that “there is an opening for negotiations here, the Americans say, and we will use that in every possible way that we can,” Reuters reported.

Støre additionally stated 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 Keir Starmer advised enterprise chiefs that “clearly there will be an economic impact” from Donald Trump’s tariffs, as he insisted the federal government would react with “cool and calm heads,” PA information company reported.

He stated “nothing is off the table” relating to the UK response.

Starmer stated the federal government will now deal with making choices “guided only by our national interest” and on “putting money in the pockets of working people,” as he harassed “one of the great strengths of this nation is our ability to keep a cool head.”

Listed here are some additional quotes from Starmer, by way of PA:

“Today marks a new stage in our preparation. We have a range of levers at our disposal and we will continue our work with businesses across the country to discuss their assessment of the options.”

“Our intention remains to secure a deal, but nothing is off the table.”

“We must rise to this challenge and that is why I’ve instructed my team to move further and faster on the changes I believe will make our economy stronger and more resilient.”

“Because this Government will do everything necessary to defend the UK’s national interest, everything necessary to provide the foundation of security that working people need to get on with their lives.”

“That is how we have acted and how we will continue to act: with pragmatism, cool and calm heads, focused on our national security.”

Our political editor, Pippa Crerar, famous that Downing Road, which had been anticipating a 20% fee to be imposed on the UK, expressed reduction to have escaped the upper fee with decrease, 10% tariffs.

Keir Starmer’s extra conciliatory method to the Trump administration appeared to have paid off, she stated.

European Fee president Ursula von der Leyen warned of “dire consequences” for tens of millions of individuals, as she stated tariffs would “hurt consumers around the world.”

She stated there was “no clear path through the complexity and chaos that is being created as all US trading partners are hit,” however she insisted the EU’s unity “is our strength” and the bloc can 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 actual fact it has the most important single market on the planet.

“Europe’s strength is our strength,” he stated, including he hoped for “a negotiated solution.”

Italian prime minister Giorgia Meloni referred to as the introduction of US tariffs “wrong” as she vowed to “do everything we can to work towards an agreement with the United States, with the aim of avoiding a trade war that would inevitably weaken the West in favor of other global players.”

“In any case, as always, we will act in the interest of Italy and its economy, also by discussing with other European partners,” she added.

Swedish prime minister Ulf Kristersson stated he “deeply regreted” the US choice, saying “we don’t want growing trade barriers” as he lauded the advantages of free commerce.

However he stated the federal government was prepared to reply and work with the EU to “take every opportunity to reverse these developments.”

“We want to find our way back to the path of trade and cooperation together with the US,” he harassed.

Irish prime minister Micheál Martin stated that tariffs “benefit no one,” as he warned they’re “bad for the world economy, they hurt people [and] businesses.”

“My priority, and that of the government, is to protect Irish jobs and the Irish economy, and we will work with our companies … to navigate the period ahead,” he stated.

He stated he would work with EU companions to “get on a negotiation with the US to limit the damage.”

Martin additionally highlighted “the added value and the strength that Ireland has given to so many US companies” based mostly there.

Polish prime minister Donald Tusk posted a short replace on social media, saying: “Friendship means partnership. Partnership means really and truly reciprocal tariffs. Adequate decisions are needed.”

Finnish prime minister Petteri Orpo stated the tariff choices had been “concerning,” as he warned “there are no winners in a trade war.”

“Businesses, consumers, and economic growth suffer. The EU is ready to respond and negotiate. We support this effort. Finland is prepared as part of the Union,” he stated.

Morning opening: A damaged stick

Jakub Krupa

European Fee president Ursula von der Leyen warned this morning that the worldwide economic system “will massively suffer” on account of tariffs imposed by US president Donald Trump final night time, as she stated the EU was “prepared to respond.”

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 may “move from confrontation to negotiation,” as she warned “there seems to be no order in disorder.”

But it surely wasn’t instantly apparent that there was any real prospect of that occuring.

As an alternative the EU and the person member states are actually scrambling to contemplate find out how to handle the state of affairs.

French president Emmanuel Macron has referred to as an emergency assembly with sectors affected by Trump’s tariffs this afternoon.

German financial day by day Handelsblatt printed new estimates this morning that the US tariffs – together with 25% on automobile imports – may value 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 full worth of German automotive exports to the US at €36.8 bn.

However the fear shouldn’t be solely in regards to the speedy impression, however the extra long run penalties of final night time’s choice.

Addressing Europeans immediately, von der Leyen stated “I know that many of you feel 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 Economic system, put it to Handelsblatt:

“There may be this memorable image of a stick you could bend and that comes again time and again. However sooner or later, for those who bend an excessive amount of, the stick breaks.

I imagine that by way of belief in america, one thing has damaged down in latest weeks that won’t come again so shortly.”

It’s Thursday, 3 April 2025, it’s Jakub Krupa right here, and that is Europe Reside.

Good morning. Fasten your seatbelts, it’s going to be a vigorous one.