Furious EU condemns Trump's 'major blow to the world economy', accuses US of creating 'chaos' and threatens counter-measures as global leaders react in horror to Donald's 'Liberation Day'

The European Union has condemned Donald Trump's sweeping tariffs as 'a major blow to the world economy', with world leaders going on the defensive as they digest what the bombshell measures will mean for global trade.

'There seems to be no order in the disorder. No clear path through the complexity and chaos that is being created as all US trading partners are hit,' European Commission President Ursula von der Leyen said.

Responding to the 20 percent tariffs on EU exports to the United States, she said Brussels was 'finalising a first package of countermeasures' and preparing to implement more.

The EU chief warned that the 'uncertainty' created by President Trump's dramatic move 'will spiral and trigger the rise of further protectionism,' adding that 'the consequences will be dire for millions of people around the globe.' 

She said that while it was 'not too late to address concerns through negotiations', the EU would not hesitate to bring in more 'to protect our interests and our businesses if negotiations fail.'

The UK, out of the EU and presenting itself as a key US ally, has been hit with lower tariffs than the neighbouring 27-state bloc. 

But Prime Minister Sir Keir Starmer has admitted that the 10 per cent tariff imposed on UK exports to the US by President Trump will 'clearly' have an economic impact, adding that the government would 'fight for the best deal'.

Italian Prime Minister Giorgia Meloni, a long-time ally of Trump, roundly criticised his set of tariffs on imports from the EU and urged a deal, warning a trade war would 'inevitably weaken the West'.

'The introduction by the US of tariffs towards the EU is a measure that I consider wrong and that does not suit either party,' she said.

The Italian premier's office said she had cleared her diary today to focus on the response to the tariffs hike.

Meanwhile Irish deputy premier Simon Harris warned that the EU 'has to respond if the US refuses to engage, refuses to negotiate.'

Speaking to reporters outside Government Buildings in Dublin, Harris said the EU was ready to respond as a 'much larger economic trading bloc' than the US, adding: 'We can't just kind of stand idly by.

'I think the approach taken by the president to the commission today is calm, is measured, is balanced, it's basically saying 'we'll respond if we have to, but we'd much rather talk. We're ready to respond. We're prepared to respond, but we'd much rather talk and engage.'

France's President Macron, who has not publicly commented on the tariffs so far, is set to hold an emergency meeting with representatives of sectors 'impacted by the tariff measures' today.

French Prime Minister Francois Bayrou described the tariffs as 'a catastrophe for the economic world.'

'It is an immense difficulty for Europe,' he said. 'I believe that it is also a catastrophe for the United States and for American citizens.' 

Berlin said that it backed the EU in its efforts to seek a 'negotiated solution' with Washington over new tariffs but also warned the bloc was ready to hit back with 'a balanced, clear and determined response' if talks fail.

German economy minister and vice chancellor Robert Habeck warned that 'US tariff mania' could 'drag countries into recession and cause massive harm worldwide. With dire consequences for many people.'

'For consumers in the US, the day will not be 'Liberation Day' but 'Inflation Day',' he said, referring to the term Trump used to describe the new duties.

With Europe's biggest economy, Germany stands to be hit hard by the new tariffs as its sells huge amounts of goods, from cars to pharmaceuticals, to the United States.

After Switzerland was hit with 31 percent tariffs, President Karin Keller-Sutter said the government would quickly decide on the next steps.

'The country's long-term economic interests are the priority. Respect for international law and free trade are fundamental,' she said.

Suggesting countermeasures and using a EU flag emoji, Polish Prime Minister Donald Tusk wrote on X: 'Friendship means partnership. Partnership means really and truly reciprocal tariffs. Adequate decisions are needed.'

Spanish Economy Minister Carlos Cuerpo said this morning that his government is ready to take action to protect the country's companies and consumers from the effects of the new tariffs announced by United States President Donald Trump.

The new tariffs are 'unfair and unjustified,' he said in an interview with radio station RNE.

The EU is eager to negotiate to avoid a trade war though would have to retaliate if there is no room for negotiation, Cuerpo said, echoing his counterparts across the bloc.

There are also concerns in Europe that Trump's higher customs duties will lead to a flood of cheap goods from other countries, especially China. 

Bernd Lange, who leads the EU parliament's trade committee, slammed Trump's 'unjustified, illegal and disproportionate measures'.

European industry groups called Trump's move counterproductive for nations and customers alike.

The German Automotive Industry Association said the tariffs would 'only create losers' and urged the EU to act 'with necessary force, while continuing to signal its willingness to negotiate'.

The Association of the German Chemical Industry called on the EU to 'keep a cool head,' warning that 'a spiral of escalation would only increase the damage'.

The EU had already been hit by several US tariff announcements since Trump returned to office in January, including a 25 percent levy on auto imports that came into force on Thursday.

The bloc's producers were also affected by a 25 percent US tariff on steel and aluminium from around the world - to which Brussels has already promised countermeasures to begin in mid-April.

US Treasury Secretary Scott Bessent warned countries not to retaliate.

'Sit back, take it in,' he told Fox News. 'Because if you retaliate, there will be escalation'.