European Commission President Ursula von der Leyen said on Wednesday that the European Union hopes to avoid a trade war with the United States but is prepared to retaliate if Washington imposes new tariffs.
U.S. President Donald Trump is expected to announce sweeping import levies against multiple countries, a move he has framed as "Liberation Day" to address what he claims are unfair trade imbalances.
Speaking before the European Parliament in Strasbourg, von der Leyen stressed that the EU’s priority remains a diplomatic resolution. "Our objective is a negotiated solution. But of course, if need be, we will protect our interests, our people, and our companies," she said.
Europe’s Strategic Leverage
Von der Leyen underscored the EU’s economic strength, stating that the bloc holds "a lot of cards" to counter U.S. measures. "Europe has not started this confrontation. We do not necessarily want to retaliate. But if it is necessary, we have a strong plan to retaliate, and we will use it," she declared.
She noted that Brussels would carefully assess the U.S. announcements before determining its response, adding that she had consulted with EU leaders on potential next steps. "Europe holds a lot of cards, from trade to technology to the size of our market," she said. "But this strength is also built on our readiness to take firm countermeasures if necessary. All instruments are on the table."
The Commission president expressed disappointment over the U.S. decision, calling the transatlantic trade relationship the "largest and most prosperous worldwide." She warned that tariffs would harm consumers, jeopardize jobs, and create a "bureaucratic monster" at customs while undermining U.S. companies operating in Europe.
"This confrontation is in no one’s interest," von der Leyen said, predicting that the duties could also hinder Trump’s goal of reindustrializing America.
Despite the escalating tensions, she reiterated Brussels’ commitment to seeking a negotiated outcome. "We will approach these negotiations from a position of strength," she said. However, she cautioned that if talks fail, the EU will not hesitate to take "firm countermeasures."
"We have everything we need to protect our people and our prosperity," von der Leyen told lawmakers. "The people of Europe should know: together, we will always promote and defend our interests and values. And we will always stand up for Europe."
Analysts warn that a full-blown trade war between the U.S. and EU could have severe economic repercussions at a time of heightened global uncertainty.