The German chemicals industry on Wednesday, April 2, called for the EU to "keep a cool head" in response to US President Donald Trump's new tariffs, warning that "a spiral of escalation would only increase the damage."
"We regret the decision of the US government," the Association of the German Chemical Industry (VCI) said in a statement, calling on Brussels to maintain a "close dialogue" with America, the largest export market for the German chemical industry.
The VCI, which represents industry giants such as Bayer and BASF, said the EU must "remain flexible in its response" to the tariffs. "Our country must not become a pawn in an escalating trade war," the association said, adding that "the goal must be a mutually fair solution – for Europe and the US. The United States is and remains a central trading partner for Germany."
The United States is by far the most important export market for German chemical products outside the EU and absorbs almost a quarter of the country's pharmaceutical exports. The chemicals industry is the third-largest industrial sector in Germany. Along with the automotive industry, it is especially vulnerable to the effects of new US tariffs. Both those sectors have already struggled in recent years with increased competition from China as well as a hike in production costs.
Italian Prime Minister Giorgia Meloni on Wednesday also criticized the new US tariffs on imports from the EU and urged a deal, warning a trade war would only 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 in a statement posted on social media.
"We will do everything we can to work for a deal with the United States, aiming to prevent a trade war that would inevitably weaken the West in favor of other global actors." She said Rome would discuss the issue with other European partners, adding that either way, "We will act in the interest of Italy and its economy."
The UK remains committed to sealing an economic deal with the United States which could help "mitigate" a 10% tariff imposed on exports to the US, a minister said Wednesday. "Our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced," business minister Jonathan Reynolds said after Trump imposed sweeping new tariffs on US trading partners.
Reynolds added however that the UK government would continue to defend the country's interests, saying in his statement that "nothing is off the table," and said "we have a range of tools at our disposal and we will not hesitate to act."
Britain has been negotiating to reach a last-minute post-Brexit trade agreement with Washington to help it avoid – or at least mitigate – more tariffs.
But on Tuesday the government said the country was likely to suffer US tariffs despite making "rapid progress" on the deal. "It is important at a moment like this that we don't have knee-jerk reactions," Prime Minister Keir Starmer told parliament earlier Wednesday before Trump's announcement. He added that "we will take a calm, pragmatic approach" to tariffs.
As it stands, the United States is the UK's single largest country trading partner. The US accounted for 15% of the UK's goods exports and 10% of its goods imports in 2023, according to the latest annual data from the Office for National Statistics. Britain's spending watchdog, the Office for Budget Responsibility, has estimated that US taxes of up to 20% would reduce the UK's GDP by 0.6% in the 2026-2027 fiscal year. The major categories of goods the UK exports to the US include machinery and transport equipment, like cars and power generation equipment, and chemicals, such as pharmaceuticals.
Irish Prime Minister Micheal Martin said on Wednesday any EU reaction to US tariffs of 20% should be "proportionate," adding he deeply regretted the move by Trump. The Irish government would "now reflect with" EU partners on the next steps, but "any action should be proportionate, aimed at defending the interests of our businesses, workers and citizens," Martin said in a statement.
Trump's trade tariffs on close ally Australia are "totally unwarranted" and will change the perception of their relationship, Prime Minister Anthony Albanese said Thursday. "These tariffs are not unexpected, but let me be clear, they are totally unwarranted," he told a news conference after the 10 percent tariff was announced, adding, "This will have consequences for how Australians see this relationship."