European Union (EU) chief Ursula von der Leyen said on Tuesday that the bloc still hopes for a “negotiated solution” to US tariffs set to take effect this week, but that “all tools are on the table” to retaliate if necessary.
“We are open to dialogue,” the head of the European Commission told a session of the European Parliament, “but we have a strong plan to retaliate if necessary.” US President Donald Trump is set to announce a new set of tariffs on several countries as soon as Tuesday night, calling it “liberation day” to correct what he says are unfair trade imbalances.
“We will carefully assess tomorrow’s announcements to calibrate our response,” von der Leyen said, adding that she was consulting with EU leaders on the “next phase”. The commission leads the 27-nation bloc’s trade policy and is in charge of negotiations with the United States to avoid a trade war.
“Europe did not start this dispute,” he said, “Our aim is a solution through negotiations. But of course, if necessary, we will defend our interests, our people and our companies.” He promised that Europe would respond with “unity and determination.” Trump’s aggressive tax strategy is raising fears of a global trade war, risking a chain reaction of retaliation from major trading partners such as China, Canada and the EU.
Since Trump returned to power in January, the EU has been hit by a number of US tariff announcements, including a 25 percent tax on auto imports that will take effect on Thursday. The bloc’s producers were also hit by a 25 percent US tariff on steel and aluminum from around the world, with Brussels already promising countermeasures starting in mid-April.
