Ursula von der Leyen: EU prefers to negotiate but has strong plan to respond to Trump tariffs

The European Union has a “strong plan” to hit back at tariffs imposed by Donald Trump but would prefer to negotiate, European Commission chief Ursula von der Leyen has said, The Guardian reports.

Trump, who has upended eight decades of certainty about transatlantic relations since taking office, threatened tariffs on goods from around the world from Wednesday. His administration announced in March that it would impose tariffs on imported steel and aluminium. The increase in tariffs on cars will also come into effect on Thursday.

Speaking to the European Parliament on Tuesday, von der Leyen said the next sectors to face tariffs would be semiconductors, pharmaceuticals and timber.

She said many Europeans felt “completely disheartened” by the US statements.

"Europe did not start this confrontation. We do not necessarily want to retaliate, but if necessary, we have a strong plan for retaliation and we will use it," she stressed.

Following the announcement of steel and aluminium tariffs in March, the European Commission said it would impose countermeasures on up to €26 billion worth of US goods. They include the reimposition of tariffs on $4.5 billion in US goods, such as jeans and Harley-Davidson motorcycles, that were suspended during Joe Biden’s presidency. The measures are due to take effect in mid-April after the EU executive chose to delay the original April 1 date to align them with other steps and to clarify the EU’s position among the 27 member states.

The EU executive is consulting member states on a second tranche of tariffs worth around €18 billion, covering steel, aluminium, poultry, beef, seafood and nuts.

Each member state is concerned about how Trump will react to retaliatory sanctions against the US.

France, for example, is concerned about the impact on French wines and spirits if the commission targets US bourbon. Its Prime Minister François Bayrou has called the EU’s proposed tariffs on Kentucky bourbon a misstep after meetings with the French cognac industry.

According to EU-US trade, worth 1.6 trillion euros by 2023, the European bloc exports more goods across the Atlantic than the US, led by cars, medicines and pharmaceuticals, which could give it leverage.

EU officials have not ruled out retaliatory measures against US services, such as suspending intellectual property rights. In theory, retaliation could target US technology companies, banks and financial services providers.