Trump newest: Tariffs ‘main blow to world economic system’ says EU as markets fall in Asia

By Adam Parsons, Europe correspondent

There will likely be a response from the European Union – the query is how quickly, and the way robust.

A symbolic reprisal is one alternative – placing tariffs on basic American merchandise resembling Harley-Davidson motorbikes or bottles of bourbon.

That will not injury the European economic system, however it will not make a lot of a distinction both.

There is a reluctance to slap wide-ranging, indiscriminate tariffs just because that will enhance prices for a lot of European producers.

So one thing extra focused could look interesting and that might imply going after the tech giants – Fb, Apple, Google, Amazon, for instance.

Corporations who’ve already had rows with EU regulators and are seen as being, to various extents, near the White Home. If Europe might particularly goal Tesla, it most likely would.

There are additionally these suggesting the EU ought to maintain hearth for the second, assured that Trump’s tariffs will backfire and eager that the results are seen.

One worry is that among the low cost items that had been destined for US markets will now be diverted to Europe, flooding its market.

One other worry is how the Windsor Framework will likely be affected, now that there are completely different US tariffs on both facet of the Irish border.

And, lastly, there’s that insult from the president, who referred to as the European Union “pathetic”. 

A couple of minutes later, a senior EU diplomat despatched me a message saying “the US is Brexiting the world, however you possibly can’t cease the march of folly”.

Transatlantic relations are getting even icier.