EU chief says’strong plan’ to counter US tariffs if needed.
The European Union stands ready to respond to U.S. tariffs, while expressing a preference for diplomatic negotiations to resolve the issue. Ursula von der Leyen, the chief of the EU executive, pointed out that American tariffs would negatively impact consumers and manufacturers in the U.S., while underscoring the importance of the EU’s efforts to diversify its trade relationships and remove barriers within its internal market. The European Union has formulated a robust strategy to respond to tariffs enacted and anticipated by U.S. President Donald Trump, while expressing a preference for a negotiated resolution, according to EU executive chief Ursula von der Leyen on Tuesday.
The Trump administration implemented tariffs on imported steel and aluminum in March, with increased duties on automobiles set to take effect on Thursday. On Wednesday, Trump is expected to outline proposals for implementing “reciprocal tariffs.”
Ursula Von der Leyen acknowledged the U.S. perspective that certain nations have exploited global trade regulations, noting that the EU has also experienced negative consequences. She also indicated her awareness of the U.S. intention to pursue re-industrialization. She argued that U.S. tariffs represent a tax burden on consumers, which would exacerbate inflation and increase costs for American manufacturers sourcing components, ultimately jeopardizing employment opportunities.
Our aim is to achieve a resolution through negotiation. “However, should the situation require it, we will safeguard our interests, our citizens, and our enterprises,” Ursula von der Leyen stated during her address to the European Parliament in Strasbourg. “Retaliation is not an immediate objective for us.” However, should the situation demand it, we possess a robust strategy for retaliation that we are prepared to implement.
Ursula Von der Leyen emphasized the necessity for the EU to diversify its trade relationships and eliminate internal obstacles to cross-border commerce within its single market. The International Monetary Fund has estimated that the internal market barriers within Europe impose costs equivalent to a 45% tariff on manufacturing and a staggering 110% on services. She informed EU lawmakers that the Commission is set to present proposals next month aimed at dismantling certain barriers and averting the emergence of new ones.
