US-EU: French PM-US Tariffs A 'Catastrophe For Economic World'

Germany's caretaker Chancellor Olaf Scholz speaking for the first time since the US' announcement of 'reciprocal' tariffs on the world, says that President Donald Trump's decision on tariffs is "fundamentally wrong", and that "the entire world economy will suffer from this". Scholz says that "Europe will respond appropriately and proportionately". Scholz: "Even if we did nothing in response, the tariffs will cause problems for the US economy...There are intricate supply chains that you can't simply sever."

• For all the talk of the EU being ready to go with a response, MNI's Policy team reports that, according to an EU source, the wait for any retaliation could be longer than expected (see 'MNI: EU Liberation Day Retaliation May Take Time - EU Source', 2 April).
• Scholz's comments are slightly less doom-mongering than those of French PM Francois Bayrou, who said earlier in a meeting at the Senate, "This decision is a catastrophe for the economic world. It is a huge challenge for Europe. I believe it is also a catastrophe for the United States and for American citizens,"
• Italian PM Giorgia Meloni has cancelled all engagements today as she focuses on potential responses and actions the gov't can take to protect the Italian economy. As we noted on 2 April, US VP JD Vance visits Rome 18-20 April with Meloni likely to use a meeting to try and argue the case for a loosening of measures (see 'ITALY: Meloni-Tariffs To Hit Producers Hard, Won't Rule Out Adequate Responses', 1221BST).