**Brussels**: European markets are on edge as traders await US President Trump’s tariff announcement. Officials anticipate immediate repercussions, with concerns over retaliatory measures and market stability. Notable voices, including ECB President Lagarde, urge for a united European response to maintain trade equilibrium.
European markets are currently on edge as the continent prepares for the potential announcement of sweeping tariffs by US President Donald Trump. The announcement is set to take place in the White House Rose Garden at 4 pm Eastern Time (10 pm CET, 9 pm BST) on Wednesday. This has raised concerns about cost increases and the possibility of retaliatory measures from various global trading partners.
France’s Minister of Industry, Marc Ferracci, addressed these uncertainties, stating that Europe aims to respond proportionately to any new tariffs imposed but will avoid escalating tensions. He remarked on RMC radio, “Europe has always been on the side of negotiation and calming things down, because trade wars, you know, only produce losers.”
The new tariffs are anticipated to take effect immediately following Trump’s announcement, according to White House spokesperson Karoline Leavitt. Additionally, a significant 25% global tariff on auto imports is scheduled to commence on April 3.
Trump has characterised his tariff strategy as an effort to equalise the typically lower tariff rates in the US with those of other nations. He has also indicated that the moves aim to counter non-tariff barriers which he believes unfairly disadvantage American exports. However, details on the exact format of the tariffs have remained vague. Early reports suggest that Trump is contemplating a broad 20% universal tariff.
Olli Rehn, the Governor of the Bank of Finland and a prominent figure within the European Central Bank, commented in an interview with Politico, urging the European Union to prepare “proportionate countermeasures” in response to the US tariffs. This sentiment was echoed by European Central Bank President Christine Lagarde, who described the situation as a unique opportunity for Europe. Lagarde expressed that “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.”
In terms of market reactions, European stocks have shown a downward trend ahead of the tariff announcement. The FTSE 100 index in London has decreased by 20 points, or 0.2%, settling at 8,614, while shares in Germany, France, and Italy have also experienced declines of approximately 0.5%. The European Commission has indicated that it will work on formulating a response to the tariff measures within a two-week timeframe.
As the situation evolves, investors and officials across Europe remain cautious, monitoring developments closely in anticipation of the potential impacts of the US tariff policies on global trade relations.
Source: Noah Wire Services
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