Overview

• Donald Trump is expected to unveil new tariffs on April 2, potentially targeting all imports with reciprocal or blanket measures, with a particular focus on the European Union.
• The EU has prepared a response plan, including reintroducing suspended tariffs on US goods like jeans, whiskey, and motorcycles, and considering taxes on digital services provided by US tech companies.
• Trump's proposed 25% tariffs on imported cars and auto parts are set to take effect on April 3, posing a significant threat to the German automotive industry.
• The trade dispute highlights broader economic risks, with analysts warning of potential inflation, supply chain disruptions, and job losses on both sides of the Atlantic.
• While the EU emphasizes its preference for negotiation, it has warned of 'maximum impact' retaliatory measures if the US proceeds with its aggressive tariff strategy.