Transatlantic relations face test with new levies

Washington's move to unravel alliance, reshape trade dynamics, say observers

European leaders face a critical test of transatlantic relations as they prepare countermeasures against United States President Donald Trump's sweeping new tariffs, with analysts warning the move threatens to unravel decades of Western economic alliance and reshape global trade dynamics.

European Commission President Ursula von der Leyen warned the global economy "will massively suffer" from Trump's newly imposed tariffs, which included a 20-percent duty on the European Union.

Speaking to reporters on Thursday, she said the EU is already "finalizing a first package of countermeasures in response to tariffs on steel" and "preparing for further countermeasures to protect our interests and our businesses if negotiations fail".