European Commission President Ursula von der Leyen has warned that the EU has a strong plan to respond to U.S. tariffs imposed and planned by President Donald Trump. However, she emphasized that the EU would prefer negotiations over retaliation.
Trump’s administration has already imposed tariffs on imported steel and aluminum, with higher tariffs on cars set to take effect soon. Additionally, reciprocal tariffs are expected to be announced.
Von der Leyen, addressing the European Parliament in Strasbourg, stated that while the EU understands U.S. concerns over global trade rules, American tariffs could fuel inflation and hurt U.S. industries by increasing costs.
“We aim for a negotiated solution, but if necessary, we will protect our interests, our citizens, and our businesses,” she said.
Possible EU Countermeasures
The EU’s response options include:
- Stricter regulations on major U.S. tech firms like X (formerly Twitter), Google, and Amazon.
- Higher taxes on American banks and slower licensing processes for U.S. companies in the EU.
- Blocking U.S. companies from public procurement contracts in Europe.
- Using the EU’s anti-coercion instrument, which could lead to severe restrictions on American tech, finance, and pharmaceutical industries.
Tobias Gerke from the European Council on Foreign Relations warned that if the U.S. pushes too far, the EU could escalate pressure by introducing digital taxes on Silicon Valley, financial regulations on Wall Street, or export taxes on American pharmaceuticals.
“The U.S. may have the bigger stick, but Europe has plenty of sharp stones to throw,” he added.
