EU chief Ursula von der Leyen said the bloc has a solid strategy for retaliation if the US imposes sweeping tariffs on it. However, she has stressed that a “negotiated solution” to avoid a trade war is preferable.
European Commission President Ursula von der Leyen on Tuesday said she hoped to avoid a trade war but that Brussels had a “strong plan” to respond to any tariffs imposed by Washington.
US President Donald Trump is set to announce a slew of import levies against multiple countries, in what he has called a “Liberation Day” to tackle supposedly unjust trade imbalances.
Von der Leyen calls for negotiation
“Our objective is a negotiated solution. But of course, if need be, we will protect our interests, our people, and our companies,” von der Leyen told the European Parliament in Strasbourg.
“Europe has not started this confrontation. We do not necessarily want to retaliate. But if it is necessary, we have a strong plan to retaliate and we will use it.”
“We will assess tomorrow’s announcements carefully to calibrate our response,” said von der Leyen, adding she had been consulting with EU leaders on the “next steps.”
“Europe holds a lot of cards, from trade to technology to the size of our market. But this strength is also built on our readiness to take firm countermeasures if necessary. All instruments are on the table,” she told lawmakers.
“So many Europeans feel utterly disheartened by the announcement from the United States,” von der Leyen said. “This is the largest and most prosperous trade relationship worldwide. We would all be better off if we could find a constructive solution.”
What do we know about Trump’s tariffs?
The US president claimed the world’s biggest economy has been “ripped off by every country in the world.”
Although Trump on Monday said he would be “very kind” when revealing details of the tariffs, markets have been gripped by uncertainty, leading to a broad sell-off in equities and fueling concerns of a potential recession.
The US president’s combative tariff strategy has stoked fears of a global trade war, risking an escalating spiral of retaliation by trading partners such as China, Canada and the EU.
Since Trump’s return to the White House in January, the EU has faced multiple US tariff hits — including a 25% auto import levy kicking in Thursday.
Producers were also affected by a 25% tariff on steel and aluminum from around the globe, to which Brussels has already pledged countermeasures from mid-April.
