The Amsterdam stock exchange fell 1.7% to 886 points after opening on Thursday, following United States president Donald Trump’s announcement of blanket 20% import taxes on European goods.

Chip-related stocks were hardest hit, with blue chip stocks ASM International down 4.6%, Besi 4% and ASML 3.3%. Staffing agency Randstad, which has considerable business interests in the US, fell 3.7%. Financial stocks and Shell were also affected.

The picture is similar across Europe in the wake of Trump’s announcement. European Commission president Ursula von der Leyen has already said that Europeans face more expensive groceries and medicines, and that supply chains will be disrupted.

Von der Leyen did hold the door open for talks with the US, noting that the world trading system has “serious deficiencies”, but said Brussels is preparing a package of measures “to defend our companies and our interests”. Plans are already being made in response to Trump’s earlier announcement of tariffs on steel products.

An initial global basic tariff of 10% will come into effect on April 5, followed by a country-specific element on April 9.

ING economist Bert Colijn has described Trump’s approach as a “major shock to the system” and a “big experiment”.

Nevertheless, he told NOS the initial impact on the Netherlands will be minor because US firms will have no choice but to continue buying from trusted partners, since “companies will not set up factories in the US in the short term”.

He did, however,  warn of a knock-on effect on both manufacturing and consumer confidence.

Dutch employers’ organisation VNO-NCW said it is concerned that the import taxes could lead to a trade war, but added they “should not go unanswered”. A spokesman told broadcaster NOS that Trump’s measures are “far-reaching” and that all the consequences remain to be seen.

The dialogue with the US must continue, the spokesman said, because “no one benefits from a trade war that results in only losers”.

Dutch foreign trade minister Reinette Klever described the import taxes as bad news for the Netherlands and the EU, pointing out that the US is the Netherlands’ most important trading partner outside the EU.