EU Warns of Countermeasures as World Leaders Respond to US Tariffs

The EU stated that the global economy will ’massively suffer' under Trump’s new tariffs.

European Commission President Ursula von der Leyen delivers a statement in Brussels on March 4, 2025. Reuters/Yves Herman

The European Union will unveil countermeasures to the latest U.S. tariffs if negotiations with the White House stall, European Commission President Ursula von der Leyen said on April 2, as leaders around the world responded to the new levies.

U.S. President Donald Trump on April 2 unveiled a 10 percent minimum reciprocal tariff on most goods imported to the United States while imposing a higher 20 percent levy on the EU.

He said the tariffs were designed to help rebuild the U.S. economy and prevent cheating.

In a statement read out in Samarkand, Uzbekistan, on April 3 ahead of the April 4 EU-Central Asia partnership summit, von der Leyen said that the newly unveiled tariffs were “a major blow to the world economy” that will have “immense consequences.”

“The global economy will massively suffer,” the EU chief said. “Uncertainty will spiral and trigger the rise of further protectionism. The consequences will be dire for millions of people around the globe.”

Inflation will also soar, and the most vulnerable citizens will likely be affected, von der Leyen said.

“I agree with President Trump, that others are taking unfair advantage of the current rules,” she said. “And I am ready to support any efforts to make the global trading system fit for the realities of the global economy. But I also want to be clear: Reaching for tariffs as your first and last tool will not fix it.

“That is why, from the outset, we have always been ready to negotiate with the US, to remove any remaining barriers to Transatlantic trade. At the same time, we are prepared to respond.”

Von der Leyen said the EU is finalizing a package of countermeasures in response to tariffs on steel, referencing the 26 billion euro (roughly $28 billion) package of tariffs that the EU plans to impose on some American goods this month after Trump’s U.S. steel and aluminum tariffs took effect on March 12.

“We are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail,” the EU chief said.

Her comments come as Trump announced tariffs on nearly all U.S. trading partners, part of what he said are efforts to balance trade deficits.

The rates include a flat 10 percent baseline levy, along with additional individualized rates that Trump said are designed to match each nation’s trade barriers on the United States. The tariffs are set to take effect at 12:01 a.m. on April 5.

Speaking from the Rose Garden at the White House, Trump declared that it was “Liberation Day in America” and said the tariffs would “make America greater than ever before,” simultaneously boosting domestic manufacturing and lowering prices for consumers.

The president described the EU as pathetic and said it was “ripping off” the United States.

“Now we’re going to charge the European Union. They’re very tough. Very, very tough traders,” Trump said.

World Leaders Respond

Canada

While Canada was omitted from the extensive list of countries facing baseline and higher reciprocal tariffs, Canadian Prime Minister Mark Carney believes that the levies will “rupture the global economy.”

Speaking to reporters at an April 3 press conference, the Liberal Party leader said he expects more tariffs to be announced in the coming days, targeting his nation’s lumber, pharmaceutical, and semiconductor industries.

Carney, former governor of the Bank of Canada, thinks Trump’s tariffs will disrupt the U.S. economy, leading to a possible recession that could trigger knock-on effects for its northern neighbor.

“The global economy is fundamentally different today than it was yesterday. We must do extraordinary things for ourselves; we must do things previously thought impossible at speeds we haven’t seen in generations,” Carney said.

“We are living in a new world now. It will be hard on Canadians, but I have no doubt we will rise to the challenge.”

Trump’s auto tariffs went into effect on April 3, prompting Ottawa to impose retaliatory 25 percent tariffs on U.S.-made vehicles that are not compliant with the United States–Mexico–Canada Agreement, also known as the USMCA.

Sweden

Swedish Prime Minister Ulf Kristersson said in an April 2 statement, “I deeply regret the path the U.S. has embarked upon.”

“We don’t want growing trade barriers. We don’t want a trade war. That would make our populations poorer and the world more dangerous in the long run,” Kristersson said. “But—Sweden and the Swedish Government are well prepared for what’s happening now. We stand on solid economic ground, with world-class public finances.”

Kristersson said that he would “take every opportunity” to reverse the tariffs in the EU and hopes to be able to contain the new U.S. tariffs.

“We want to find our way back to a path of trade and cooperation together with the U.S., so that people in our countries can enjoy a better life. Sweden will continue to stand up for free trade and international cooperation,” he said.

Mexico

Mexican President Claudia Sheinbaum expressed pleasure that her country was not hit by the new tariffs. Although Mexico will remain subject to the existing tariff regimes, Sheinbaum lauded the nation’s positive relationship with the United States.

“There are no additional tariffs to Mexico, and that is good for the country,” Sheinbaum said at an April 3 press conference. “This has to do with the good relationship we have constructed with the U.S. government, based on collaboration but with respect.”

Economic Minister Marcelo Ebrard welcomed the “preferential treatment” and lauded Sheinbaum’s leadership.

“President Sheinbaum’s strategy has worked,” he said.

Sheinbaum recently confirmed that her government does not intend to implement tit-for-tat retaliatory tariffs on the United States.

Ireland

Irish Prime Minister Micheál Martin said that the tariffs “benefit no one.”

“My priority, and that of the government, is to protect Irish jobs and the Irish economy,” he said in a statement on social media platform X.

UK

British Prime Minister Keir Starmer said a trade war is not in the UK’s national interest.

“Negotiations on an economic prosperity deal, one that strengthens our existing trading relationship—they continue,” he said.

Italy

In a Facebook post on April 2, Italian Prime Minister Giorgia Meloni said her administration would do everything they could to work toward an agreement with the United States.

Meloni said Italy hopes to avoid a trade war that “would inevitably weaken the West in favor of other global players.”

France

French President Emmanuel Macron, in a meeting with French industry representatives on April 3, called for European companies to suspend planned investment in the United States.

Macron said no response has been ruled out at present and suggested targeting digital services and U.S. financial mechanisms. He said that France’s response would be “more massive” than its earlier response to U.S. steel and aluminum tariffs.

Macron said the tariffs are a “brutal” shock to international trade and called on the EU to respond “industry by industry.”

China

“There are no winners in trade wars and tariff wars, and protectionism is not a way out,” said Chinese Foreign Ministry spokesperson Guo Jiakun at a press conference on April 3.

“What the U.S. should do is to correct its wrong practices and resolve trade disputes with all countries, including China, through consultations based on equality, mutual respect, and mutual benefit.”

Guo said that China would “do what is necessary to defend our legitimate rights and interests.”

As part of the administration’s trade policy changes, Beijing will be hit with a 34 percent reciprocal levy that reflects tariff and non-monetary trade barriers. U.S. officials say this is on top of the previous 20 percent tariffs, lifting the total rate to 54 percent on Chinese goods entering the United States.

Andrew Moran and Reuters contributed to this report.