Trump's 10% Tariffs Take Effect as Europe Urges Calm Response

U.S. Tariffs on Imports Come Into Force Amid Market Volatility

At 6 a.m. CET on Saturday, a sweeping 10% tariff on a wide range of imports into the United States came into effect, marking a major escalation in President Donald Trump's trade strategy. The country-specific tariffs announced earlier this week are scheduled to follow on 9 April.

Markets around the world reacted immediately and sharply. Wall Street experienced its worst week since the onset of the COVID-19 pandemic, while European markets recorded steep losses. Italy’s FTSE MIB led the downturn with a 6.53% drop, followed by declines in Frankfurt, London, and Paris.

China responded with 34% retaliatory tariffs on U.S. imports, intensifying fears of a broader global trade war. The VIX index, known as the “fear gauge,” spiked 50.93% to 45.31 — a level not seen since 2020. In just 48 hours, U.S. markets lost $5.2 trillion in value.

Trump Downplays Market Shock, Promotes Trade Strategy

Despite the financial turbulence, President Trump remained firm in his messaging. Posting on Truth Social, he dismissed concerns about the tariffs’ impact.

“Big businesses aren’t worried about the tariffs — they know they’re here to stay. What they’re focused on is the BIG, BEAUTIFUL deal, which will strengthen our economy. Very important. Happening right now!!!” he wrote on Friday evening.

Trump’s emphasis on long-term gains is seen by critics as downplaying the immediate financial risk to global markets and trade partners.

European Leaders Condemn Tariffs, Stress Diplomatic Path

The European response has so far been marked by measured criticism and calls for negotiation. EU Trade Commissioner Maroš Šefčovič labeled the new duties “harmful and unjustified” following a conversation with U.S. Commerce Secretary Howard Lutnick. He reaffirmed the bloc’s commitment to “meaningful negotiations to avoid escalation.”

In the UK, Prime Minister Keir Starmer initiated diplomatic outreach with allies including Australia’s Anthony Albanese and Italy’s Giorgia Meloni. “A full-blown trade war would be deeply damaging,” Starmer warned, noting that coordinated international dialogue is essential.

Italy Urges EU-Led Response, Avoiding Retaliatory Escalation

Italian officials struck a balanced tone, advocating for restraint while acknowledging the seriousness of the situation. Speaking at the Teha Forum in Cernobbio, Economy Minister Giancarlo Giorgetti said, “We must keep a cool head, assess the consequences, and avoid rushing into a tit-for-tat tariff war, which could ultimately harm everyone — especially us.”

Giorgetti stressed that Italy should act within the framework of the European Union: “Rather than going it alone, Italy should work through Europe to make sure its interests are properly defended.” His remarks drew praise from Deputy Prime Minister Matteo Salvini.

Foreign Minister Antonio Tajani also emphasized the importance of proportionate response. “These tariffs are clearly a negative development. But there’s no need for panic,” he said, pointing out that the economic impact is currently limited to around 0.3% of EU GDP.

Tajani also noted the broader implications of the tariffs for European defense budgeting. “With these tariffs in place, it will be extremely difficult for European nations to meet the 5% GDP military spending target recently proposed by the United States for NATO members,” he added.

With global markets rattled and diplomatic channels now active, Europe finds itself walking a tightrope — balancing economic protection with the risk of escalation. As negotiations continue, the coming weeks will be critical in determining whether this marks the start of a prolonged trade war or averted crisis.

Stay tuned to The Horizons Times for the latest on international trade developments, economic policy, and geopolitical negotiations.