The European Union is preparing further countermeasures against U.S. tariffs if negotiations fail, according to European Commission President Ursula von der Leyen.
President Donald Trump had imposed 20% tariffs on the bloc on Wednesday.
Speaking on a livestreamed broadcast, von der Leyen said that Trump’s move was a “major blow” to the world economy.
“There seems to be no order in the disorder, no clear path to the complexity and chaos that is being created as all U.S. trading partners are hit,” she said.
Shortly after Trump’s announcement, the British government said the United States remains the U.K.’s “closest ally.”
Business Secretary Jonathan Reynolds said the U.K. hoped to strike a trade deal to “mitigate the impact” of the 10% tariffs on British goods announced by Trump.
“Nobody wants a trade war and our intention remains to secure a deal,” said Reynolds. “But nothing is off the table and the government will do everything necessary to defend the U.K.’s national interest.”
China urged the Trump administration to cancel the new U.S. tariffs and said it would “resolutely take countermeasures” to protect its rights and interests.
The latest round of tariffs leaves China, one of the largest U.S. trading partners, facing the highest U.S. tariff rate with a combined total of at least 54%.
“The so-called ‘reciprocal tariffs,’ based on the U.S.’s own subjective and unilateral assessments, violate international trade rules, severely harm the legitimate rights and interests of other parties, and represent a typical act of unilateral bullying,” the Chinese Commerce Ministry said in a statement.
“Many trading partners have already voiced strong dissatisfaction and clear opposition,” it said, adding that the U.S. should “resolve differences with its trading partners through equal-footed dialogue.”
Apple slid more than 6% in late trading on Wednesday and led a broader decline in tech stocks after President Donald Trump announced new tariffs of between 10% and 49% on imported goods.
The majority of Apple’s revenue comes from devices manufactured primarily in China and a handful of other Asian countries. Nvidia, which manufactures new chips in Taiwan and assembles its artificial intelligence systems in Mexico and elsewhere, fell about 4%, while electric vehicle company Tesla dropped 4.5%.
Across the rest of the megacap universe, Alphabet, Amazon and Meta all dropped between 2.5% and 5%, and Microsoft was down by almost 2%.
If Apple’s postmarket loss is matched in regular trading on Thursday, it would be the steepest decline for the stock since September 2020.
The global financial services firm ING said a 20% reciprocal tariff from the United States on the European Union will hurt.
“It’s worsened the eurozone’s short-term outlook. Now, so much depends on European governments to push through with their planned fiscal stimulus and reforms to strengthen domestic economies,” it said.
“Wednesday’s tariff announcements by Donald Trump should be the final reminder for Europe that the Transatlantic relationship has changed for good. And this doesn’t only apply to security and defense policies.”
Ireland Prime Minister Micheál Martin slammed the 20% tariff on imports from across the European Union, calling it “deeply regrettable.”
“I strongly believe that tariffs benefit no one. My priority, and that of the government, is to protect Irish jobs and the Irish economy,” he said.
Manfred Weber, the president of the EPP, the European Parliament’s largest party, said Wednesday: “To our American friends, today isn’t liberation day — it’s resentment day. Donald Trump’s tariffs don’t defend fair trade; they attack it out of fear and hurt both sides of the Atlantic. Europe stands united, ready to defend its interests, and open to fair, firm talks.”
