The United States is the most important export market for German chemical products outside the EU and absorbs almost a quarter of the country's pharmaceutical exports.

In a background call before Trump's speech, a senior White House official told reporters that the president would impose "baseline tariffs" on all countries. That rate is set at 10% and will go into effect on 5 April. Some countries will only face the base rate. These include:

European officials are weighing deploying a tool called the anti-coercion instrument that would potentially target American tech and financial giants.

Now, the US President is getting his revenge. Trump announced on Wednesday night 20pc tariffs on all EU imports. He said the EU was charging 39pc tariffs on imports from the US, arguing that his tariffs were “discounted”. However, few in Brussels will feel they are getting a good deal.

Europe wants to cooperate with the United States but the EU is ready to respond as one if Washington leaves it no choice by imposing tariffs on steel and aluminium, German Chancellor Olaf Scholz said on Sunday.

If Washington doesn't restore its credibility as an ally to Europe, it might find itself alone to face its next security crisis.

The European Union wants more defense autonomy from the United States. But they still want a partnership with Washington.

President Trump has promised to roll out taxes on imports from other countries on Wednesday. European Commission president says EU, if forced to do so, will retaliate.