European Commission President Ursula von der Leyen has warned the United States that the European Union is prepared to retaliate against Washington’s escalating trade tariffs, Anadolu Agency reported on Tuesday.
Speaking at a European Parliament plenary debate, von der Leyen stated: “We do not necessarily want to retaliate, but we have a strong plan to retaliate if necessary.”
The warning comes after the US announced a 25% tariff increase on steel, aluminum, cars, and car parts, with additional duties expected to target semiconductors, pharmaceuticals, and timber. Another major tariff announcement covering a wide range of global goods is expected on Wednesday, she added.
Von der Leyen cautioned that broad-based tariff increases would exacerbate economic challenges by raising costs, fueling inflation, and creating bureaucratic hurdles for businesses on both sides of the Atlantic.
In response, the EU has developed a three-pronged strategy. First, it remains open to negotiations but intends to approach talks from a position of strength, using its economic influence to push back against the US measures. If diplomacy fails, the EU is ready to impose strong countermeasures.
Second, the bloc is accelerating efforts to diversify its trade partnerships, expanding agreements with Mercosur, Mexico, and Switzerland, while also negotiating new trade deals with India, Indonesia, and Thailand.
Finally, the EU will strengthen its Single Market by removing internal trade barriers, enhancing business efficiency, and fostering economic growth.
The rising trade tensions come at a critical time for US-EU relations, as both economies navigate inflationary pressures and geopolitical uncertainties.
