BANGKOK: US President Donald Trump's announcement of a new 20% tariff on the European Union drew a sharp rebuke from European Commission President Ursula von der Leyen.

She said it was a major blow to the world economy and the consequences “will be dire for millions of people."

Groceries, transport and medicines will cost more, she said, “And this is hurting, in particular, the most vulnerable citizens.”

Von der Leyen acknowledged that the world trading system has “serious deficiencies” and said the EU was ready to negotiate with the US but also was prepared to respond with countermeasures.