Global economy will ‘massively suffer’ from Donald Trump tariffs, Ursula von der Leyen warns – Europe live

European Leaders React to US Tariffs

Following the announcement of new US tariffs, key European leaders have voiced strong concerns regarding potential global economic repercussions. European Commission President Ursula von der Leyen cautioned of “severe consequences” for individuals worldwide, stating that these tariffs would negatively impact consumers globally. This development has sparked widespread discussion and calls for a unified European response to safeguard economic stability.

EU Unity and Response

Von der Leyen highlighted the intricate and chaotic situation arising from the widespread impact on US trading partners. She emphasized the European Union’s solidarity as its primary asset and affirmed the bloc’s readiness to implement measured countermeasures. Outgoing German Economy Minister Robert Habeck echoed this sentiment, underscoring the necessity for a cohesive EU strategy. He advocated leveraging the EU’s position as the world’s largest single market to address the trade challenges.

Member States’ Concerns

Germany

Habeck asserted that “Europe’s strength lies in its unity” and expressed hope for a “negotiated resolution” to the escalating trade tensions.

Italy

Italian Prime Minister Giorgia Meloni denounced the US tariff introduction as “wrong” and pledged to pursue an agreement with the United States. Her aim is to avert a trade conflict that she believes would weaken Western influence, benefiting other global actors. Meloni assured that Italy would prioritize its national and economic interests, engaging with European allies to navigate the situation.

Sweden

Swedish Prime Minister Ulf Kristersson conveyed his “deep regret” over the US decision, opposing the expansion of trade barriers and championing the advantages of free trade. While expressing disappointment, Kristersson indicated governmental preparedness to collaborate with the EU in seeking to reverse these trade developments, aiming to restore trade and cooperation with the US.

Ireland

Irish Prime Minister Micheál Martin stated unequivocally that tariffs “benefit no one,” cautioning against their detrimental effects on the global economy, individuals, and businesses. Martin affirmed his government’s commitment to protecting Irish jobs and the national economy, pledging to support Irish companies through the forthcoming period. He also committed to working with EU partners to initiate negotiations with the US to mitigate potential damage, emphasizing Ireland’s significant contribution to US companies operating within its borders.

Poland

Polish Prime Minister Donald Tusk communicated via social media, emphasizing the principles of reciprocity in international partnerships. “Friendship means partnership,” Tusk stated, advocating for “truly reciprocal tariffs” and “adequate decisions” in response to the US trade measures.

Finland

Finnish Prime Minister Petteri Orpo described the tariff decisions as “concerning,” warning that “there are no victors in a trade war.” He stressed the negative consequences for businesses, consumers, and economic growth. Orpo affirmed the EU’s readiness to respond and negotiate, with Finland prepared to act as part of the Union in these efforts.

Global Economy at Risk: “A Broken Stick”

The global economy faces significant risk following the imposition of US tariffs. European Commission President Ursula von der Leyen warned early this morning of the “massive suffering” the global economy would endure due to tariffs initiated by US President Donald Trump. The EU, she stated, is preparing its response to these new trade barriers. These developments mark a significant shift in international trade relations and raise concerns about escalating trade disputes.

EU Seeks Negotiation Amidst Rising Tensions

Despite President Trump’s critical remarks towards the EU, labeling it as “pathetic” while imposing 20% tariffs, Von der Leyen expressed a desire to transition from confrontation to negotiation. She voiced concern over the apparent lack of structure in the unfolding situation, remarking, “there seems to be no order in disorder.” However, the immediate feasibility of such a negotiated resolution remains uncertain as the EU and its member states urgently explore strategies to manage the repercussions.

Immediate and Long-Term Economic Concerns

French President Emmanuel Macron has convened an urgent meeting with sectors most vulnerable to the US tariffs to strategize on immediate responses. Meanwhile, German economic daily Handelsblatt released new projections indicating substantial costs for German automotive giants BMW, Mercedes, and Volkswagen. The US tariffs, including a 25% levy on car imports, could cost these companies as much as €11 billion, given Germany’s leading position as the EU’s car exporter to the US. This sum represents nearly a third of Germany’s total automotive exports to the US, valued at €36.8 billion, highlighting the considerable economic exposure.

Von der Leyen: Trust Erosion with Long-Term Implications

Beyond the immediate economic impact, there is growing apprehension about the enduring ramifications of this decision. Addressing European citizens, President von der Leyen acknowledged the sentiment of disillusionment felt by many towards a long-standing ally. She emphasized the critical need for forward-thinking and strategic planning in response to these challenges.

Moritz Schularick, president of the Kiel Institute for the World Economy, in a statement to Handelsblatt, used a powerful metaphor to describe the current state of affairs:

“There is this memorable picture of a stick that you can bend and that comes back again and again. But at some point, if you bend too much, the stick breaks.

I believe that in terms of trust in the United States, something has broken down in recent weeks that will not come back so quickly.”

Thursday, April 3, 2025 marks a pivotal moment as Europe grapples with these trade challenges. This is Europe Live, bringing you real-time updates on these critical developments.

Good morning. Prepare for a dynamic day as these economic and political events unfold.