Von der Leyen says EU has "strong plan" to retaliate against U.S. tariffs
Ursula von der Leyen asserts EU will protect its interests amid U.S. tariffs
The European Union is prepared to retaliate against tariffs imposed by the administration of U.S. President Donald Trump, European Commission President Ursula von der Leyen said on Tuesday.
Speaking before the European Parliament in Strasbourg, von der Leyen emphasized that while the EU prefers a negotiated resolution, it is ready to defend its economic interests if necessary, reports Reuters.
The Trump administration had previously implemented tariffs on imported steel and aluminum and is set to introduce higher duties on automobiles starting Thursday. Additionally, the U.S. is expected to unveil plans for "reciprocal tariffs" on Wednesday, signaling a further escalation in trade tensions.
Von der Leyen Criticizes U.S. Tariffs, Calls for Trade Diversification
Von der Leyen acknowledged that the U.S. had concerns about unfair global trade practices and emphasized that the EU had also faced similar challenges. However, she warned that imposing tariffs would ultimately harm American consumers by increasing inflation and making U.S. manufacturing more expensive due to higher costs for imported components.
“Our objective is a negotiated solution. But of course, if need be, we will protect our interests, our people, and our companies,” she stated. “We do not necessarily want to retaliate. But if it is necessary, we have a strong plan to retaliate, and we will use it.” Beyond the immediate tariff dispute, von der Leyen stressed the importance of diversifying European trade and removing internal barriers within the EU single market.
She cited an International Monetary Fund (IMF) report estimating that Europe’s internal market barriers were equivalent to a 45% tariff for manufacturing and a 110% tariff for services. To address this, the European Commission plans to introduce measures next month aimed at reducing these obstacles and preventing new ones from emerging.
The EU remains committed to finding a diplomatic solution but is prepared to retaliate if necessary. Brussels also aims to strengthen its internal market and reduce trade dependencies amid escalating global trade tensions.
Additionally, Donald Trump has announced a sweeping 25% tariff on imported automobiles and key vehicle components, escalating trade tensions and signaling a broader push for protectionist economic policies.
