Europe Braces for Trade War Amid Trump’s Tariff Threats

European leaders are preparing for a potential ‘trade war’ after U.S. President Donald Trump announced a 20% tariff on EU products. Ursula von der Leyen, President of the European Commission, condemned the decision and vowed retaliation, stating that the bloc is ‘ready to respond.’ This move by Trump targets a group of 60 countries, including China, India, Japan, and South Korea, imposing higher mutual tariffs while applying 10% tariffs on the rest of the world. The decision marks the largest rollback in American trade policy since the Great Depression. Europe, as the world’s largest single market, must defend itself against disruptions in global trade caused by the U.S.’ isolationist stance. French Prime Minister François Bayrou described the decision as a ‘catastrophe for the economic world,’ warning of dire consequences globally. The EU remains open to negotiations but is prepared to counteract if necessary. Individual nations within the EU are assessing impacts on their industries, with Italy, Spain, Slovakia, and Poland expressing concerns over significant economic repercussions. Spain fears a 14% drop in exports to the U.S., especially in machinery and electrical equipment, prompting Prime Minister Pedro Sánchez to announce a €14.1 billion response plan.