The European Union is prepared to reach an agreement with the United States regarding tariffs, while simultaneously preparing countermeasures should negotiations fail. This announcement was made by EU Commission President Ursula von der Leyen during a joint press conference in Aarhus with Danish Prime Minister Mette Frederiksen.

Von der Leyen emphasized the EU’s preference for a negotiated solution, but also acknowledged the possibility of an unsuccessful outcome. The EU is focusing on reaching an agreement in principle, foregoing a detailed agreement with the Trump administration due to time constraints.

The announcement precedes the expiration of a tariff pause imposed by the U.S. on July 9. Von der Leyen expressed hope that an agreement could be reached by this date, but cautioned that the timing of such an agreement remains uncertain.

The EU Commission is contemplating “all means and instruments” concerning retaliatory tariffs should an agreement not materialize. This includes a “rebalancing” list targeting American goods.

Von der Leyen highlighted the magnitude of Europe’s total trade with the U.S., underscoring the necessity of reaching an agreement in principle. She also noted that the UK pursued a similar approach, opting for an agreement in principle with the Trump administration to avoid additional tariffs.

Furthermore, the President of the EU Commission expressed her hope that the Danish EU presidency would facilitate the negotiation of additional trade agreements with third countries before year’s end. These countries include Mercosur member countries (Brazil, Argentina, Uruguay, and Paraguay), Mexico, and India. Von der Leyen believes that these agreements could contribute to greater stability for the European market despite the American tariffs on European goods.