European Commission President Ursula von der Leyen has said that universal tariffs announced by US President Donald Trump "is a major blow to the world economy".

Last night (Wednesday, April 2), President Trump announced a series of "reciprocal tariffs" on other nations, including 20% on European Union imports to the US.

There will be a baseline or minimum tariff of 10% placed on all goods entering the US, which will take effect from April 5.

The individualised reciprocal higher tariff on the countries with which the US has the “largest trade deficits”, including the EU, takes effect April 9.

The EU is understood to be working on a series of counter tariffs, however, no announcement has been made yet.

Tariffs

President von der Leyen said that the tariffs will have "immense consequences" and the "global economy will massively suffer".

"Uncertainty will spiral and trigger the rise of further protectionism. The consequences will be dire for millions of people around the globe," she said.

The EU chief noted that "the most vulnerable countries" are now subject to some of the highest US tariffs.

Von der Leyen said that the move will "hurt consumers around the world", adding that "millions of citizens will face higher grocery bills" and "inflation will go up".

"The cost of doing business with the United States will drastically increase. And what is more, 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.

"In the past eighty years, trade between Europe and the United States has created millions of jobs," she said.

Trade

Von der Leyen acknowledged that "the global trading system has serious deficiencies".

"I agree with President Trump, that others are taking unfair advantage of the current rules. And I am ready to support any efforts to make the global trading system fit for the realities of the global economy.

"But I also want to be clear: Reaching for tariffs as your first and last tool will not fix it," she said.

Von der Leyen said that the EU has "always been ready to negotiate with the US, to remove any remaining barriers to Transatlantic trade".

"At the same time, we are prepared to respond. We are already finalising a first package of countermeasures in response to tariffs on steel.

We will also be watching closely what indirect effects these tariffs could have, because we cannot absorb global overcapacity nor will we accept dumping on our market

"As Europeans we will always promote and defend our interests and values. And we will always stand up for Europe," she said.

The EU Commission president said that is "an alternative path" and that "it is not too late to address concerns through negotiations".

"We will work towards reducing barriers, not raising them. Let's move from confrontation to negotiation," she said.

Von der Leyen also said that many Europeans "feel let down by our oldest ally".

"Europe stands together for our businesses, for our workers, and for all Europeans.

"We will continue to build bridges with all those that like us care about fair and rules-based trade as the basis for shared prosperity," she added.