European Union executive head Ursula von der Leyen has said the bloc has a “strong plan” to retaliate against United States President Donald Trump’s tariffs, although its preference is a “negotiated solution”.
Speaking before Trump’s planned announcement of reciprocal tariffs later this week, von der Leyen, president of the European Commission, said Europeans were “utterly disheartened” at the trade salvoes coming from the US.
“Let me be clear: Europe did not start this confrontation, we think it is wrong. But my message to you today is that we have everything we need to protect our people and our prosperity,” von der Leyen told a session of the European Parliament on Tuesday.
“We have the largest single market in the world, we have the strength to negotiate, we have the power to push back, and the people of Europe should know that together we will always promote and defend our interests and our values, and together we will always stand up for our Europe.”
Von der Leyen said while there were issues to address in global trade, such as unfair subsidies and denial of market access, “across the board” tariffs would make the situation worse.
“I hear Americans when they say some others have taken advantage of the rules. I agree. We also suffer from it. So let’s work on it,” Von der Leyen said.
“Tariffs are taxes that will be paid by the people,” she added.
“Tariffs are taxes for the Americans on their groceries and their medication. Tariffs will just fuel inflation, exactly the opposite of what we want to achieve.”
Von der Leyen said the EU was open to negotiations with Washington, but the bloc would negotiate from a “position of strength” and take “firm countermeasures if necessary”.
“All instruments are on the table,” she said.
Von der Leyen’s comments come as countries are bracing for Trump’s biggest tariff announcement yet on April 2, which the US president has dubbed “liberation day”.
Trump’s trade salvoes have rattled stock markets and stoked tensions with some of Washington’s closest allies, including Brussels.
His 25 percent tariff on cars and vehicle parts, in particular, has the potential to do serious economic damage to Europe – where the auto industry is estimated to employ nearly 14 million people – once it takes effect on Thursday.
EU exporters have since last month also been paying a 25 percent tariff on steel and aluminium, a measure that prompted the bloc to announce 26 billion euros ($28bn) worth of “countermeasures” on US goods.
On Monday, Trump reiterated his regular talking point that other countries were “ripping off” the US, but said the reciprocal tariffs would be “very nice” compared with other countries’ trade policies.
Trump earlier in the week clarified that the tariffs would apply to “all countries”, pouring cold water on hopes that the measures might only target certain trade partners.
