The European Union has declared it is “prepared for any scenario” following former President Donald Trump’s recent threats to significantly hike tariffs on European automobile imports.
European Commission President Ursula von der Leyen issued a firm response, reminding Washington that current trade agreements must be upheld. The warning comes after Trump suggested increasing tariffs on cars from the current 15% to a staggering 25%.
Upholding International Agreements
Von der Leyen emphasized that a binding agreement between the EU and the U.S. currently exists and must be respected by both parties. She warned that any breach of these terms would trigger a swift and proportional response from Brussels.
“The United States cannot act unilaterally,” von der Leyen stated, insisting on the maintenance of the 15% tariff ceiling. She further clarified that while the EU prefers cooperation, it is actively preparing “countermeasures” to protect European industries should the U.S. proceed with the escalation.
Diplomatic Efforts Amidst Friction
Despite the sharp rhetoric, the Commission President noted that diplomatic channels remain open. EU and U.S. negotiators are currently engaged in discussions aimed at clarifying the situation and preventing a full-scale trade war that could destabilize global markets.
Industry experts warn that a jump to a 25% tariff would deal a heavy blow to the European automotive sector, particularly for German manufacturers, but would also likely result in higher costs for American consumers.
The EU’s stance remains clear: it seeks to avoid escalation but will not hesitate to defend its economic interests if the “rules-based order” is ignored.
