Macron calls Trump’s tariffs ‘brutal and unfounded’ and warns France could suspend US investments – Europe live

The French president has offered one of the more hawkish responses to Trump’s announcements overnight. Expect his proposal for suspending recent and new French investments in the US until there is more clarity on tariffs to get a lot of attention. His and his spokesperson’s repeated references to a potential digital services tax against US tech giants will also be surely noticed in the White House – even as it is clear that there isn’t unanimity on this with Ireland, where most tech companies have their EU headquarters, openly against this idea. Macron says he agrees with EU leaders that “nothing can be ruled out” in response to Trump’s move as “all instruments are on the table.” “We must do whatever is effective and most proportionate … but which also clearly shows we are determined to … not have these sectors fall victim to these tariffs,” he says. Among available tools, he pointedly makes a reference to a potential intervention on digital services, “where the United States benefits enormously from Europe.” At one point he calls for a suspension of new and recently announced French investments in the US until tariffs are clarified, saying that continuing with investments while being hit by tariffs would send a wrong message. He also urges leaders to stay united, and resist temptation to “go alone” but to leverage the size of the European market in any policy response instead. French president Emmanuel Macron is now addressing a meeting of business leaders talking about how to best protect the French economy following Donald Trump’s tariffs. He opens by saying the US president’s decision was “brutal and unfounded,” as he expresses concern about the tariffs’ “massive” impact on France and its overseas territories and Europe more broadly. He signals there will need to be an answer to this move. EU officials have denounced the indiscriminate nature of tariffs Donald Trump has imposed on some of the world’s poorest countries as a “deplorable move”. “To see countries like Lesotho, Cambodia, Bangladesh hit the hardest by US tariffs is absolutely deplorable and is something that is extremely difficult for us to comprehend,” said one. “These are not countries that are producing semiconductors, these are not countries that are producing cars. They produce things that the US may not produce coffee, bananas or other things. So these do not represent a threat,” they said. The EU’s says if negotiations fail and it imposes counter tariffs, they will be targeted in a “smart way”. The officials have also confirmed it would not ever contemplate messing with food standards to address Trump’s complaint last night over “non tariff barriers”, seen as a reference to rules banning US hormone fed beef and chlorinated chicken in the EU. “We do not lower our standards. So whenever we protect consumers, protect the environment, we have legitimate legislation that is non discriminatory, which is the basic test in trade law. We do not discriminate against anyone. We design our rules in line with the rules of the World Trade Organization. We do not lower the level of protection of food, for example, in any negotiation, certainly not in this negotiation,” said a senior insider. The EU is refusing to comment on the details of its retaliatory response saying it has to analyse the impact first but that everything “remains on the table” including measures that could see US tech companies unable to charge for their intellectual property for software. The bloc is facing three types of tariffs – tariffs on aluminium and steel Trump announced last month, last night’s 25% tariff and cars and the 20% blanket tariff on exports. It has now concluded its response on aluminium and steel which will be put to a vote next Wednesday with analysis of the other two tariffs expected to take weeks. Over in France, president Emmanuel Macron will soon be meeting with representatives of sectors hit by US tariffs. According to media reports, the meeting – expected to start 4pm local time – will bring together business leaders from aerospace industry, agriculture, wine, chemicals, electronic and metallurgy, among others. French prime minister François Bayrou will also be there, with numerous ministers. The Danish prime minister, Mette Frederiksen, has put on a show of unity with Greenlandic leaders in her first visit to the Arctic island since Donald Trump’s renewed threats to acquire the territory, saying that when Greenland is in a “difficult situation” so too are Denmark and Europe. The Danish PM boarded an inspection ship on Thursday with Greenland’s new prime minister, Jens-Frederik Nielsen, after which they were due to hold a joint press conference expected to focus on unity and Arctic security. Greenland’s outgoing prime minister, Múte B Egede, was also onboard. The three leaders were pictured looking out to sea and perched on a helicopter while onboard the ocean-patrol vessel HDMS Vædderen. In contrast to last week’s visit by the US vice-president, JD Vance – which, after a diplomatic outcry, was limited to the US military base Pituffik and did not involve Greenlandic or Danish representatives – Frederiksen was greeted at the airport by Egede and went straight to the capital, Nuuk, where she met Nielsen. On social media she posted a picture of herself alongside the incoming and outgoing leaders, with the message: “Cooperation. Equality. Security.” Earlier today I flagged the Danish prime minister Mette Frederiksen’s much anticipated visit to Greenland (9:44), so let’s get an update on that from our Nordic correspondent, Miranda Bryant. Sweden sees the US announcement of tariffs as the start of negotiations, in which the Nordic country aims to ultimately get as low tariffs as possible, prime minister Ulf Kristersson said. In a wide-ranging speech responding to the move, he said: “We are ready to retaliate. Our preferred option is of course to negotiate a deal. We don’t want growing trade barriers. We don’t want a trade war. If this fails, the EU stands ready with countermeasures. And we are big trading power globally. But our goal is not retaliation, but to lower tariffs and increase trade – with the US and with other countries. That is what made our populations more prosperous and the world safer.” Pivoting to broader policy challenges, he stressed that “the rules-based order that we have operated within since the second world war is now on shaky ground.” He set his three priorities – increasing immediate support for Ukraine, boosting military and defence, and increasing competitiveness – rejecting dismissive comments about Europe’s future. “Europe is certainly not perfect, but we do have agency over our own future,” he said. He added: “If EU manages to reform while others either are banned from global trade or isolate themselves from global trade – then Europe will be a winner. The world needs and deserves a European renaissance. Sweden will do our part of it.” Let’s bring you some more comments from Spanish prime minister Pedro Sánchez’s speech earlier. He said Spain would move past “this unfair and unjustified crisis into which some people have decided to plunge the world” and would not allow itself to be “dragged into zero-sum-game thinking or into a way of seeing the world that is guided by fear, disinformation and short-termism”. In a final rebuke to Trump, he added: “We will continue to push for a just distribution of wealth, for environmental sustainability and for equality between men and women. We will keep working for European integration, we will keep defending multilateralism, we will keep opening ourselves to the world, and we will keep looking for partners who respect our interests and who also share our values.” Micheál Martin gets asked specifically about the potential problems for the country’s pharmaceutical industry (13.50). He says his government needs to “maintain engagement” with US officials to “convey the complexity of the pharmaceutical story,” as he points out that Ireland operates “as part of a complex supply chain” with “physical infrastructure” that is “not easily relocatable overnight.” He warns there is “a real danger of undermining your own companies, the US companies, by proceeding precipitously or in a premature way.” He also is asked about proposals to introduce a European digital services tax. “We do not favour a digital services tax,” he says, adding that the EU’s response needs to be “considered … measured,” and “one that is clearly calculated and calibrated not to bring more damage upon the European economy and European citizens.” “The desired outcome is negotiations between the US and the European Union,” he says. And that concludes their press conference. Elaborating on the EU’s planned response to US tariffs, EU commissioner McGrath expands a bit by saying the focus is on “on preventing the harm rather than responding to the harm.” “We’re still in a scenario where we’re looking at potential [harm], and while sentiment is immediate and uncertainty has immediate impacts, the direct impact of tariffs is something that will take some time to work its way through the system,” he says. He also pushes back against Sánchez’s suggestion to create an EU aid fund for companies affected, saying it is “premature.” “When you talk about an EU fund, there aren’t many potential sources of funding. Is it additional member state contributions? Is it new own resources? Is it collective borrowing? Is it reallocation of resources from one part of the budget to another? So we’re not in that space, because our focus is on negotiations,” he says. Martin and McGrath also get asked about Netanyahu’s visit to Hungary earlier. The Irish prime minister Martin says he is “concerned about trends within Hungary”, as he says “there are procedures there in term of dealing with member states who we believe have either transgressed the rule of law or are not really behaving in the full spirit of EU unity”. “We’ve fully supported the ICC. We’ve provided significant funding, additional funding above any per capita contribution to the ICC. International rule of law is extremely important, and Ireland will continue to adhere to it,” he says. Commissioner McGrath speaks in a similar vein, adding that “the concerns that we have in the Commission about rule of law related issues [in Hungary] are well documented. “Unfortunately, this is another retrograde step from the Hungarian authorities. Let’s see what happens over the period ahead,” he says. After his comments on protection jobs and the economy, Irish prime minister Martin gets asked if there are any plans to offer support to businesses affected. He says that “it is somewhat early yet to be talking in terms of support”, as he adds: “I think this is not the end of the story.” “My view is that there will be a period of engagement. So we have to see where this settles. And every crisis is different. So the kind of supports that were in the previous crises may not apply in this case, I think,” he says. He then gets pressed on whether Ireland will face a recession. “I think we it’s important that we take in on board that this, I think, has some distance to go yet. And we don’t yet have a clear settled pattern as to what the permanent situation will be there is no,” he says. “There is no doubt that we the world has changed, and the old order … is gone, but the new order hasn’t yet been precisely determined. In other words, I anticipate negotiations,” he added. He says the tariffs will “impact every member state”, and expresses broader concerns about the worsening economic environment. “The world, the business people, and investors want certainty, stability, predictability, they don’t have that at the moment. And that’s my overarching concern,” he says. Speaking after Martin, EU commissioner McGrath says the EU’s response will be “very carefully calibrated,” but the EU is “ready to negotiate” with the US. He offers a helpful data-backed estimate on the exact impact of the measures announced by Trump: The current provisional estimate is that, overall, about €380bn of EU exports will be subject to the additional tariffs. That comprises of approximately €290bn subject to the so called reciprocal tariffs. €26bn subject to US Section 232 tariffs on steel and aluminum and €67bn euro subject to US Section 232 tariffs on cars and car parts. This would represent, overall, around 70% of all exports to the US being subject to new tariffs that have been announced yesterday and indeed in recent days, which would result in around €80bn euro in additional duties on EU exports to the United States. Irish prime minister Micheál Martin is speaking at a press conference in Dublin right now, alongside EU justice commissioner (and former Irish finance minister) Michael McGrath. He says: Ireland believes in open and free trade, and that the imposition of tariffs is bad for the world economy. I deeply regret the United States decision to impose 20% tariffs on imports from across the European Union. We see no justification for this. He adds Ireland will work with EU partners to “reflect” how to respond, and stressed that any response would have to be “considered and measured.” “Now is a time for dialog, and I believe that a negotiated way forward is the only sensible one. A confrontation is in no one’s interests,” he adds. But he admits that “there is no doubt that the imposition of tariffs by the US will have an adverse impact,” saying the focus will be on protecting jobs and the economy. “It is important that we focus on factors that we can control, including improving our competitiveness and investing in infrastructure. By working with Irish-owned companies, with multinationals based here, with our European Union partners, and bilaterally with the United States, we can and will weather this storm.” European Commission chief Ursula von der Leyen is to meet pharma leaders next Tuesday amid fears that Trump is not yet finished on his “rebirth” project and is highly likely to introduce further tariffs. “We do expect further measures. We do fear and suspect that pharmaceuticals is next,” said a senior EU official on Tuesday. It means Ireland, which Trump accused of stealing the US’s pharma industry, is not yet out of the woods and could be hit by a double whammy of reciprocal tariffs and sectoral tariffs on medicine exports. The EU’s fears are based on the US administration’s listing of five sectors as strategically important to the country with tariffs only imposed on two so far: aluminium and steel; and cars. This leaves lumber, pharma and semiconductors still on the table. “They have identified pharma and semiconducts as strategic for manufacturing to the US … We believe that the likelihood is quite high, so we would be quite unsure whether one could breathe a sigh of relief that pharma was not hit yesterday,” said an official. There are 90 pharma plants in Ireland run by US giants and others exporting everything from Viagra, Botox, Accuvue contact lenses to cancer, arthritis and cardio drugs, accounting for €44bn of the country’s €72bn exports to the US. The US buys another €14bn worth of medical related products such as surgical equipment and devices like stents. Donald Trump’s tariff plan could undermine the Brexit deal between the EU and the UK for trading arrangements in Northern Ireland, a highly sensitive agreement designed to maintain the 1998 peace pact. As part of the president’s attempt to spur on a “rebirth” of the US, Trump has imposed a two-tier tariff rate on the island of Ireland – with a 20% tax on exports from the republic but a 10% rate on the UK including Northern Ireland. A former EU commissioner has questioned whether Trump thought through his plan’s effect on the peace process brokered by the US almost 30 years ago. Although it could put Northern Ireland at an advantage over the Republic of Ireland for exports such as whiskey and dairy produce, a political problem could arise if the EU retaliates with like-for-like tariffs of 20% on US imports. Under the Windsor framework, the EU tariffs will apply in Northern Ireland, creating a manufacturing price difference between Northern Ireland and Great Britain for any important components from the US. European stock markets have had a rough morning. Banks and miners have fallen on fears of an economic downturn. Luxury goods stocks are also lower, an anticipation that their exports to the US will be hurt by new tariffs. Here’s the situation at 1pm CEST, or midday BST: FTSE 100: down 130 points or -1.5% at 8477 points Germany’s DAX: down 496 points or 2.2% at 21,894 points France’s CAC: down 195 points or 2.5% at 7,662 points. For more reactions, follow our Business live blog with Graeme Wearden: Polish prime minister Donald Tusk said the introduction of new US tariffs “may reduce the Polish GDP by 0.4%,” with losses estimated at around €2.4bn. “A severe and bitter blow, because [it comes] from our closest ally, but we will survive it. Our friendship must stand the test,” he said in a social media post. Poland exports goods worth €11.6bn to the US, according to most recent Eurostat data. Spain’s prime minister, Pedro Sánchez, has lambasted Donald Trump’s “protectionist” tariffs against EU products, saying they run “contrary to the interests of millions of citizens on this side of the Atlantic and in the US, who will unfortunately see their businesses and their purchase power” affected by the measures. In an strongly worded and defiant speech in Madrid on Thursday morning, the socialist leader said the “wrongs of one leader” should not be allowed to impede majority progress, adding that Spain and the EU would use Trump’s “trade war” to become stronger. “This tariff attack from the US administration does not distinguish between friends and enemies,” he said. “It does not distinguish between ideologies and trade balances. It goes against everyone and everything.” Sánchez said it was simply not correct top say that the EU had put tariffs of 39% on US products. “That’s not true,” he said. “In fact, if we take a proper look at the figures, the EU only applies tariffs of around 3%, depending on the case … And it isn’t true that our commercial relationship is unequal: the trade balance between the EU and the US in goods and services is almost even.” As a result, said Sánchez, the tariffs announced by Trump were not reciprocal but were instead an excuse for “punishing countries and applying a sterile protectionism” in an effort to mitigate the US deficit. “No one will benefit from this,” he said. “No one. A trade war will affect everyone – Europe included – but it will most affect the person who’s unleashed it. That is why we once again call on President Trump to reconsider and to sit at the negotiating table with the EU and the rest of the world.” Sánchez described the tariffs as an “unprecedented” and “unilateral” US attack on Europe, adding: “Returning to the protectionism of the 19th century isn’t a smart way of tackling the challenges of the 21st century.” While Europe’s hand would always be outstretched to its friends in the US, Sánchez added: “That doesn’t mean that we’re going to sit here with our arms crossed. The EU must react in the way the Spanish government has always supported: proportionately; in a unified manner and with the strength we have as an extraordinary trade bloc and the primary global trade bloc.” Sánchez said the EU needed to speed up the integration of the single market when it came to regulations, digital services and financial flows. He said it also needed to grow and diversify its commercial links with the rest of the world, and roll out the package of counter-tariff measures that the EU had been working on for months. “The Spanish government will not wait around to see what happens in the coming days and weeks,” he said. “We will respond, as we always do, in an anticipatory manner so that we’re ready.” The prime minister announced a €14.1bn “response and commercial relaunch plan” designed to mitigate the “negative impacts of the trade war unleashed by the Trump administration” and protect the Spanish economy. If the predicted storm came, he added, “Spain will have a double umbrella: European and Spanish”. The package of measures will include €7.4bn in new financing, and the rest will come from existing instruments such as soft loans, he said. Sánchez compared the plan to his government’s efforts to tackle the economic fallout of the Covid pandemic, saying it would focus on protecting businesses and jobs through the provision of credit and financing lines. “It’s obvious that there’s no point in me pretending – and nor would I – that the situation isn’t complicated and difficult,” he said. He added: “The trade war unleashed by President Trump is dire news for the world, for the US, for Europe and for Spain. In Europe, if we look to the east, we see attacks from an evermore belligerent Russia. And now we’re seeing a trade attack coming from the west. No one in Europe or in Spain is going to be immune to these attacks. But that doesn’t mean that we’re going to stop growing or progressing. It doesn’t mean that at all.” Hungarian prime minister Viktor Orbán is now speaking at a joint press conference with Israeli prime minister Benjamin Netanyahu. Opening the meeting, Orbán offers more detail on Hungary’s reasoning behind its plans to withdraw from the international criminal court in The Hague in the Netherlands. Noting that he originally signed the document confirming Hungary’s accession to the ICC in 2000, he says the Hungarian government is “convicted that this become a political court” with its biases and “motivated by political intentions.” “I do believe that this otherwise very important court was diminished into a political forum, and we do not wish to have any parts in it,” he said, confirming plans for legislation to formally withdraw from the Rome Statute. Responding, Netanyahu calls it a “bold and principled decision” as he says “it is important to stand up to this corrupt organisation.” For more context, read this story from Jon Henley: The Israeli prime minister doesn’t stop there as he speaks of “a deep friendship, a deep alliance” between Hungary and Israel, ranging from investment, technology, defence and even sports. “But I would say that our cooperation goes deeper than that, because I believe we are fighting a similar battle for the future of our common civilization, our Judeo-Christian civilisation,” he says, positioning Israel and Hungary against “radical Islam” represented by Iran and “its proxies.” “We will smash the Iranian terror axis, which threatens not only us, but Europe and many of our neighbours in the Middle East,” he says. They don’t take questions. EU trade commissioner Maroš Šefčovič said he will speak with US counterparts on Friday as part of the bloc’s response to last night’s announcements. In a social media post, he said: Unjustified tariffs inevitably backfire. We’ll act in a calm, carefully phased, unified way, as we calibrate our response, while allowing adequate time for talks. But we won’t stand idly by, should we be unable to reach a fair deal. I’ll speak to my U.S. counterparts tomorrow. Spanish prime minister Pedro Sánchez criticised the “unprecedented” US tariffs calling them out as a return to “19th-century protectionism,” as he proposed a new €14.1bn package to support the economy in response to Trump’s move. He also said that Europe should deploy a package of counter-tarrifs and other measures in response, and set up an aid fund financed from revenues from tariffs imposed on the US in return. In a particularly punchy comment, reported by Reuters, Sánchez said that Europe now faces a trade attack from the West, just as it responds to a military attack from Russia in the East. The Spanish prime minister is still speaking, and we will bring you more from him soon. While Rubio chose not to address the contentious issue of tariffs, French foreign minister Jean-Noël Barrot, who is also in Brussels attending the Nato ministerial, offered his take on the issue. He warned the new measures will “have negative consequences on the American economy, and on the economies of the alliance’s members as a whole,” Reuters reported. Rutte opens with expressing condolences about the death of four US soldiers during a Nato training in Lithuania. He then highlights the new US administration’s desire to “break the deadlock” on Ukraine with Russia, and he pointedly says that European allies step up their spending in response to demands from president Trump. Rubio thanks for his condolences and stresses that the troops’ participation in training shows that the “US is in Nato, … as active as it has ever been,” as he criticised “this hysteria and hyperbole” about the US and Nato. The United States President Trump’s made clear he supports Nato. We’re going to remain in Nato. He’s made it clear,” he says. But he adds that the US wants Nato “to be stronger, more viable” and “invest more in national security.” “[Trump] is not against Nato. He is against a Nato that does not have the capabilities that it needs to fulfil the obligations that the treaty imposes upon each and every member state,” he says. He adds that “no one expects that you’re going to be able to do this in one year or two, but the pathway has to be real.” No questions after their statements, so that’s it. Meanwhile in Brussels, US state secretary Marco Rubio is taking part in today’s Nato ministerial meeting. He is appearing at a press conference together the alliance’s secretary general Mark Rutte now. You can follow it below and I will bring you the key lines here. Italian prime minister Giorgia Meloni has cancelled all her appointments on Thursday as she wants to focus on the response to Trump’s tariffs, her office said. La Repubblica reported that she had been expected to attend events in Calabria, but decided to stay in Rome instead. Earlier today, I brought you her initial response to Trump’s announcement from last night, as she opposed the decision and 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.” Meloni was the only sitting European leader to attend Trump’s inauguration in January. Elsewhere, Israeli prime minister Benjamin Netanyahu is in Hungary today to meet with the country’s prime minister Viktor Orbán, and that’s despite, as AP notes, a warrant for his arrest issued by the world’s top war crimes court. Instead, Netanyahu was welcomed with military honours at the beginning of his four-day trip, and the two leaders will speak together at a press conference in Budapest later this morning. The international criminal court in The Hague, the Netherlands, issued a warrant for Netanyahu’s arrest last year over his government’s actions in the Gaza Strip. Hungary criticised it at the time as “outrageously impudent” and “cynical.” A senior aide to Orbán said today that Hungary would now move to withdraw from the court, “in accordance with the constitutional and international legal framework.” While that’s a more radical move, a number of other countries previously indicated they would allow Netanyahu to visit without arresting him, including Germany and Poland, while France claimed he had “immunity” from the court’s order. I will keep an eye on this story for you and bring you the latest. The tariff issue has put Spain’s far-right Vox party – devoted fans of Trump and his radical agenda – in something of a bind. But, reacting to news of the 20% tariffs on EU products, the party’s leader, Santiago Abascal, has chosen to blame … the EU and his political opponents in Spain. His recent post on X has more than a whiff of diversionary tactics to it. In it, he accuses Ursula von der Leyen, the president of the European Commission, Spain’s Socialist prime minister, Pedro Sánchez, and Alberto Núñez Feijóo, leader of the conservative People’s party (PP) of failing to defend the interests of the Spanish people. “The People’s party and the Socialists are dragging us into a suicidal trade war,” he wrote. “Our economy competes on unequal terms because of the ideological bureaucracy of the two-party system. And the only solution they offer is further submission to China, continued wars, and censorship of anyone who speaks out. We must expel this corrupt caste that has only brought ruin and loss of freedoms. And we will do it.” The Spanish Wine Federation (FEV) has described Trump’s imposition of a 20% tariff on EU products as a “significant blow to Spanish wineries”, for whom the US is the second largest export destination, and the No 1 export destination when it comes to sparkling wines. “The tariffs announced by the US are completely unjustified in the specific case of wine, considering that the current tariff gap between the tariffs applied by the EU and the US is minimal,” the FEV’s director general, José Luis Benítez, said on Thursday. Benítez warned that the measure would harm not only Spanish wine-makers but also US consumers, “who consume more wine than they produce”. He also pointed out that the newly announced tariffs would be particularly damaging to small and medium-sized producers, which make up 99% of Spain’s wineries, as they have less capacity to diversify their exports and are more dependent on the main export markets. The US market represents approximately 13% of Spain’s total foreign sales. In 2024, 97m litres of wine were exported for a value of around €390m. German chancellor Olaf Scholz said Trump’s decision was “fundamentally wrong” and undermined the free trade globally, as he warned that all countries “will suffer from these ill-considered decisions.” He said it amounted to “an attack on a trade system that has created prosperity all round the world, itself an American achievement.” Using similar language, German economy minister Robert Habeck said these were “the most disruptive tariff increases in 90 years,” as he warned of potentially “dramatic” effects of the US president’s decisions. Speaking at a press conference in Berlin, Habeck said it was “economically wrong” to say that the existing trading arrangements were “of detriment to the US,” as he called to reject this logic and urged nations in favour of free trade to form a united front in response. Habeck warned that the consequences of these decisions will affect the next federal government and have ramifications “far beyond Germany and beyond Europe.”] The minister also spoke about countermeasures being prepared in response. He said he was not in a position to show them or announce details yet - although he briefly waves the documents at reporters – but he insisted that “good work has been done there” to prepare for this moment. He added that he hoped Trump would buckle under pressure, but “the logical consequence is that he has to feel the pressure” from Germany, Europe and other like-minded countries. Greek finance minister Kyriakos Pierrakakis said that the fresh tariffs imposed by the US government on world trade were a historic shift towards protectionism and a deviation from how the European Union sees economic and social progress, Reuters reported. “As a country, we are in favour of free trade,” Pierrakakis said in a statement. “We hope that this chapter will last as little as possible.” French prime minister François Bayrou told reporters that Donald Trump’s tariffs marked “a catastrophe” for the global economy, and posed “an immense difficulty” for Europe. Speaking on the margins of a meeting in the French Senate, he also said the move will be “a catastrophe for the US and for US citizens.” In comments reported by BFMTV and Le Figaro, Bayrou criticised the US for turning on its allies, as he warned about “serious times” facing Europe and the West. The EU will respond in a “legitimate, proportionate and decisive way” to Donald Trump’s trade tariffs, but its strongest weapon is still “a last resort”, the head of the European parliament’s international trade committee has said. Bernd Lange, a German Social Democrat, said the EU was discussing the use of the anti-coercion instrument, which EU insiders almost inevitably describe as “the big bazooka”. The anti-coercion legislation, which entered into force in 2023, gives the EU wide leeway to impose commerce and investment sanctions against a foreign government deemed to be using trade in an attempt to browbeat countries into changing unrelated policies. The law allows the EU to use ten different kinds of retaliation against a coercive government, notably targeting services. Possible measures could include taxing tech companies, revoking banking licenses and intellectual property rights, blocking companies from public procurement It was agreed not long after China had imposed trade restrictions on Lithuania over the Baltic state’s friendly policy towards Taiwan. Lange, who helped negotiate the law, said the EU was discussing use of this instrument – “this is of course the bazooka, the strongest measure we could take” – but it would only be used as a last resort. “This is not our first step. Using the ACI, this would really be hard escalation and therefore a last resort, but we have it.” Having renamed Trump’s so-called “liberation day”, as “inflation day”, the MEP said that the EU could target US tech giants in retaliation for tariffs, which is possible even without the anti-coercion law. “Of course if we are really on an escalation ladder, then of course we will have a look to the tech giants as well – I would say this is not the first choice.” The MEP, who travels to Washington next week, still hopes the EU can negotiate its way out of tariffs, but is not optimistic. He described the structure of the US government as “totally unclear” and that only the president and his trade adviser, Peter Navarro, controlled trade, rather than senior officials, such as the US Trade Representative, adding: “That is really a mess.” The EU has some options when considering its response to overnight announcements, including retaliating with tariffs on US goods and services and forming closer ties with other countries. The bloc has already rejected one possible option: fold your cards. But vowing retaliation is only the start. The questions are about what response the EU will have, how quickly it can be marshalled and whether divisions between member states will undermine the tough talk. The EU response will depend on how tightly its 27 member states line up behind a common strategy in a trade war that could trigger economic turmoil and job losses in Europe. An early indication should come on Monday when EU trade ministers meet to discuss the retaliation planned for this month and other measures. Nerves are building. France is worried about the fallout on its wines and spirits industry; Dublin fears an exodus of US multinationals headquartered in Ireland; and the Italian prime minister, Giorgia Meloni, has said the bloc should not act on impulse while the national industry group Confindustria has called for negotiations with the White House. Forging a common line will be critical to new forms of trade retaliation: for example, only a weighted majority of EU countries can decide whether the bloc is facing coercion from the US. That would be an outcome almost no one imagined a decade ago. The German Federation of Business, BDI, has denounced Trump’s tariffs as an “unprecedented attack” on global trade. In a statement issued this morning, it warned that “the European economy must not become a plaything of geopolitical interests” and called for a united response to the 20% tax the 27 countries now face. “The announced tariffs are an unprecedented attack on the international trading system, free trade, and global supply chains. The rationale for this protectionist escalation is incomprehensible. It threatens our export-oriented companies and jeopardizes prosperity, stability, jobs, innovation, and investment worldwide. The European Union can only act as a united front. This applies to the 27 member states as well as across sectors. The EU has its own instruments for an effective counter-reaction, which it can use decisively. We support the Commission’s strategy of remaining willing to negotiate, aware of Europe’s strengths, and responding flexibly to potential offers. German industry has always relied on fair competition, open markets, and cooperative relations with the United States. The EU must now strengthen its alliances with other major trading partners and should coordinate its response with them. A coordinated response is also necessary to counter diversion effects in international trade.” Elsewhere, Danish prime minister Mette Frederiksen continues her three-day trip to Greenland amid escalating tensions with the US over the future status of the island. Arriving yesterday, she said “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 said. She had a dinner with the new Greenlandic prime minister, Jens-Frederik Nielsen, last night, and today gets on with a full programme of meetings likely to touch on the future shape of Danish-Greenlandic relations and economic cooperation. Frederiksen also met with the outgoing prime minister Múte B. Egede who will remain a prominent figure in the new government formed after last month’s snap elections in Greenland. The talks will be a first test for Nielsen’s new administration on whether it can formulate new demands to Copenhagen and get things done in the face of US interest in the island. Frederiksen’s visit comes just days after a highly controversial trip by US vice-president JD Vance, who came over to the US Pituffik Space Base only to directly 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 Post reported that the Trump administration was studying the potential costs involved should the US succeed in its plans of taking control over Greenland, including whether it could put together a more attractive financial package to compete with Denmark. The paper said that officials were also looking at what revenue to the US Treasury could be gained from the island’s natural resources. I will keep an eye on what comes out of Frederiksen’s meetings. European stock markets are now open and they’re reacting exactly as you would expect them to. The pan-European Stoxx 600 index has fallen 1.5% at the start of trading, to its lowest level in over two months. Germany’s DAX fell almost 2.5% at the start of tading in Frankfurt, while in Paris the CAC 40 is down 2.2% and Spain’s IBEX lost 1.5%. You can follow all the latest business reaction here: Norwegian prime minister Jonas Gahr Støre expressed alarm over “bad news” on US tariffs warning they were “very serious,” with Norway hit by a 15% levy on its goods imported to the US. But Støre told 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 also said he would travel to Brussels on Monday to meet with senior EU officials, including European Commission president Ursula von der Leyen to discuss further steps. UK prime minister Keir Starmer told business chiefs that “clearly there will be an economic impact” from Donald Trump’s tariffs, as he insisted the government would react with “cool and calm heads,” PA news agency reported. He said “nothing is off the table” when it comes to the UK response. Starmer said the government will now focus on making decisions “guided only by our national interest” and on “putting money in the pockets of working people,” as he stressed “one of the great strengths of this nation is our ability to keep a cool head.” Here are some further quotes from Starmer, via 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, noted that Downing Street, which had been expecting a 20% rate to be imposed on the UK, expressed relief to have escaped the higher rate with lower, 10% tariffs. Keir Starmer’s more conciliatory approach to the Trump administration appeared to have paid off, she said. European Commission president Ursula von der Leyen warned of “dire consequences” for millions of people, as she said tariffs would “hurt consumers around the world.” She said there was “no clear path through the complexity and chaos that is being created as all US trading partners are hit,” but she insisted the EU’s unity “is our strength” and the bloc would be prepared to respond with calibrated countermeasures. Outgoing German economy minister Robert Habeck stressed the need for a united EU response, saying the bloc should leverage the fact it has the largest single market in the world. “Europe’s strength is our strength,” he said, adding he hoped for “a negotiated solution.” Italian prime minister Giorgia Meloni called 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 said he “deeply regreted” the US decision, saying “we don’t want growing trade barriers” as he lauded the benefits of free trade. But he said the government was ready to respond 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 stressed. Irish prime minister Micheál Martin said that tariffs “benefit no one,” as he warned they are “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 said. He said he would work with EU partners to “get on a negotiation with the US to limit the damage.” Martin also highlighted “the added value and the strength that Ireland has given to so many US companies” based there. Polish prime minister Donald Tusk posted a brief update on social media, saying: “Friendship means partnership. Partnership means really and truly reciprocal tariffs. Adequate decisions are needed.” Finnish prime minister Petteri Orpo said the tariff decisions were “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 said. European Commission president Ursula von der Leyen warned this morning that the global economy “will massively suffer” as a result of tariffs imposed by US president Donald Trump last night, as she said the EU was “prepared to respond.” Despite Trump’s direct attack on “pathetic” EU as he imposed 20% tariffs on the bloc, von der Leyen still expressed hopes that the relationship could “move from confrontation to negotiation,” as she warned “there seems to be no order in disorder.” But it wasn’t immediately obvious that there was any genuine prospect of that happening. Instead the EU and the individual member states are now scrambling to consider how to manage the situation. French president Emmanuel Macron has called an emergency meeting with sectors affected by Trump’s tariffs this afternoon. German economic daily Handelsblatt published new estimates this morning that the US tariffs – including 25% on car imports – could cost German carmakers BMW, Mercedes and Volkswagen as much as €11 bn given Germany is the largest EU car exporter to the US. For perspective, it’s just under a third of the total value of German automotive exports to the US at €36.8 bn. But the worry is not only about the immediate impact, but the more long term consequences of last night’s decision. Addressing Europeans directly, von der Leyen said “I know that many of you feel let down by our oldest ally,” as she stressed the need to think about what’s next. Or as Moritz Schularick, president of the Kiel Institute for the World Economy, put it to Handelsblatt: “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.” It’s Thursday, 3 April 2025, it’s Jakub Krupa here, and this is Europe Live. Good morning. Fasten your seatbelts, it’s going to be a lively one.