Ursula von der Leyen said the EU has a plan to respond to US tariffs, as the bloc weighs its options.
Before Trump’s scheduled announcement of reciprocal tariffs this week, von der Leyen expressed Europeans’ disappointment with the trade measures coming from the US.
“Let me be clear: Europe did not initiate this confrontation, we think it is wrong. But my message to you today is that we have everything we need to protect our people and our prosperity,” von der Leyen said to the European Parliament.
“We have the world’s largest single market, the ability to negotiate, the strength to push back, and the European people should know that together we will always promote and defend our interests and values, and together we will always stand up for our Europe,” she added.
Von der Leyen acknowledged global trade issues such as unfair subsidies and denial of market access, but she stated that tariffs across the board would only make things worse.
“I understand when Americans say that others have taken advantage of the rules. I agree. We also suffer from this. So let’s work on it together,” von der Leyen said.
“Tariffs are taxes paid by the people,” she pointed out.
“Tariffs are taxes on Americans’ groceries and medications. They will fuel inflation, which is the opposite of what we want to achieve,” von der Leyen added.
The EU is open to negotiations with Washington, but the bloc will negotiate from a position of strength and take firm countermeasures if necessary, according to von der Leyen.
“All instruments are on the table,” she stated.
Von der Leyen’s comments come as countries are preparing for Trump’s largest tariff announcement yet on April 2, which the US president has named “liberation day”.
Trump’s trade measures have caused unrest in stock markets and strained relationships with several of Washington’s closest allies, including Brussels.
The 25 percent tariff on cars and vehicle parts, in particular, could cause significant economic harm to Europe’s auto industry, which employs an estimated 14 million people.
EU exporters have also been affected by a 25 percent tariff on steel and aluminum since last month, leading the bloc to announce $28 billion worth of “countermeasures” on US goods.
On Monday, Trump reiterated his claim that other countries were taking advantage of the US and defended the reciprocal tariffs as “very nice” compared to other countries’ trade policies.
Earlier in the week, Trump clarified that the tariffs would apply to “all countries,” dampening hopes that only certain trade partners would be targeted.
