Europe scrambles for unified response as it braces for Trump tariffs
Europe is braced for US president Donald Trump to impose sweeping tariffs on global trading partners on Wednesday, threatening cost increases and likely drawing retaliation from all sides.
Details of Trump’s ‘Liberation Day’ tariff plans are due to be announced in the White House Rose Garden at 4 pm Eastern Time (10pm CET, 9pm BST).
France’s industry minister Marc Ferracci says Europe will respond to the likely implementation of tariffs in a proportionate manner but will not escalate tensions under any circumstances.
“Europe has always been on the side of negotiation and calming things down, because trade wars, you know, only produce losers,” Ferracci told RMC radio.
The new duties are due to take effect immediately after Trump announces them, White House spokesperson Karoline Leavitt said on Tuesday, while a separate 25% global tariff on auto imports will take effect on 3 April.
Trump says his reciprocal tariff plans are a move to equalise generally lower US tariff rates with those charged by other countries and counteract their non-tariff barriers that disadvantage US exports. But the format of the duties was unclear amid reports that Trump was considering a 20% universal tariff.
On Monday, however, the Bank of Finland governor Olli Rehn, one of the European Central Bank’s top policymakers told Politico that the European Union should prepare “proportionate countermeasures” and retaliate against Trump’s measures.
His comments echoed those of European Central Bank president Christine Lagarde who said the moment represented a unique opportunity for Europe, and that it should not “lie down”.
“I consider it a moment when we can decide together to take our destiny into our own hands, and I think it is a march to independence,” she said.
The European Commission has indicated it will prepare a response to the measures within two weeks.
European shares are drifting lower ahead of the US tariff announcement this evening.
In London, the FTSE 100 index has lost 20 points, or 0.2%, to 8,614. Stock markets in Germany, France and Italy have fallen by around 0.5%. Julia Kollewe has the latest business reaction here.
As ever, we’ll be bringing you the biggest news across Europe, including on tariffs, Marine Le Pen, Ukraine and more.
Key events
Italy fears fashion, pharmaceuticals and food industry likely to be hit hardest by tariffs
The effect of US tariffs on Italian companies will be massive – with fashion, pharmaceuticals and the food industry the hardest hit, the head of national industry lobby Confindustria said on Wednesday. He called for Europe to negotiate with Donald Trump to avoid further escalation and warned China would be the beneficiary.
“We will have to assess with great attention [the effects] of the tariffs that will be announced by Trump. There is a risk for Italy, our Research Centre is quantifying the impact, which will be massive,” Emanuele Orsini told daily La Stampa in an interview reported by Reuters.
Orsini said businesses with higher exports – such as the pharmaceutical sector, the fashion and food industries and production machinery – would be those most affected.
He also warned that should “Europe fuel its confrontation with the US, China would benefit from it” and hoped that the European Union would remain united in its approach to the US.
In response to tariffs, the business leader called for a cut in interest rates by the European Central Bank (ECB), new trade deals with countries including Mexico, India, Japan and Thailand and improving the European single market.
Orsini added that he hoped that Italian entrepreneurs would not start to consider relocating production outside of the country as a result of the new tariffs.
UK imposes online entry permit on European visitors
European visitors to the UK will need a new online entry permit from Wednesday as the British government shakes up longstanding travel rules.
Travellers from Europe will now need a digital Electronic Travel Authorisation (ETA) permit, which UK officials said they were rolling out to boost security and streamline entry processes. There will be a buffer period which could last several months, AFP reports.
The permit can be bought online in the next few days for €12 (£10) (12 euros), but the price is rising from 9 April to €19 (£16).
The ETA has already been introduced for American, Canadian and other visa-exempt nationals visiting the UK, which left the European Union in 2020.
The head of the UK’s border force Phil Douglas said the latest rollout was part of a wider plan to bring in the ETA for visitors from around the world. “This scheme is essentially a border security measure,” he said, adding that he did not expect Wednesday’s launch to cause disruption.
The permit allows visits of up to six months. It is digitally linked to the applicant’s passport and is valid for two years.
The application, which can be made on a smartphone app or through the government website, has been open to Europeans since the start of March. It applies to nationals of some 30 European countries, including all those in the European Union except Ireland.
The applicant will need to provide a photo of their passport and their face. The process takes around 10 minutes, according to the UK’s Home Office.
In most cases, an application decision is made within minutes but the government recommends allowing up to three working days.
It will be required for babies and children, but flight passengers transiting without crossing the UK border are exempt from the scheme after pressure from Heathrow which feared a loss of passenger footfall connecting through Europe’s busiest airport.
It is not applicable to UK residents or anyone who already has a UK immigration status.
Europe scrambles for unified response as it braces for Trump tariffs
Europe is braced for US president Donald Trump to impose sweeping tariffs on global trading partners on Wednesday, threatening cost increases and likely drawing retaliation from all sides.
Details of Trump’s ‘Liberation Day’ tariff plans are due to be announced in the White House Rose Garden at 4 pm Eastern Time (10pm CET, 9pm BST).
France’s industry minister Marc Ferracci says Europe will respond to the likely implementation of tariffs in a proportionate manner but will not escalate tensions under any circumstances.
“Europe has always been on the side of negotiation and calming things down, because trade wars, you know, only produce losers,” Ferracci told RMC radio.
The new duties are due to take effect immediately after Trump announces them, White House spokesperson Karoline Leavitt said on Tuesday, while a separate 25% global tariff on auto imports will take effect on 3 April.
Trump says his reciprocal tariff plans are a move to equalise generally lower US tariff rates with those charged by other countries and counteract their non-tariff barriers that disadvantage US exports. But the format of the duties was unclear amid reports that Trump was considering a 20% universal tariff.
On Monday, however, the Bank of Finland governor Olli Rehn, one of the European Central Bank’s top policymakers told Politico that the European Union should prepare “proportionate countermeasures” and retaliate against Trump’s measures.
His comments echoed those of European Central Bank president Christine Lagarde who said the moment represented a unique opportunity for Europe, and that it should not “lie down”.
“I consider it a moment when we can decide together to take our destiny into our own hands, and I think it is a march to independence,” she said.
The European Commission has indicated it will prepare a response to the measures within two weeks.
European shares are drifting lower ahead of the US tariff announcement this evening.
In London, the FTSE 100 index has lost 20 points, or 0.2%, to 8,614. Stock markets in Germany, France and Italy have fallen by around 0.5%. Julia Kollewe has the latest business reaction here.
As ever, we’ll be bringing you the biggest news across Europe, including on tariffs, Marine Le Pen, Ukraine and more.