European Commission President Ursula von der Leyen warned today that the EU has a robust plan to retaliate against US trade tariffs if necessary. Von der Leyen addressed MEPs in the European Parliament in Strasbourg, stating that while the goal is a negotiated solution, the EU will protect its interests, people, and companies.

Von der Leyen emphasized that Europe did not initiate the trade confrontation but is prepared to respond with strong countermeasures. She highlighted the EU’s strengths, including the largest single market in the world, the power to negotiate, and the power to retaliate.

Tariffs, according to von der Leyen, exacerbate inflation and harm citizens, American factories, and employment. She asserted that tariffs would increase costs for American factories using European components, lead to job losses, and create unnecessary bureaucratic customs procedures.

The EU remains open to negotiations, approaching them from a position of strength, von der Leyen stated. She mentioned that the EU possesses numerous advantages, from trade and technology to the size of its market, and is willing to take strong countermeasures if required, with all instruments on the table. The EU will also continue to diversify trade with other partners and strengthen the single market by eliminating remaining barriers.

Von der Leyen recalled the US administration’s announcement of increased tariffs on steel, aluminum, cars, and auto parts, and noted that semiconductors, wood, and pharmaceutical products may be next. She also mentioned the expected announcement of reciprocal tariffs that will affect almost all goods and many countries globally.

President of the European Council, Antonio Costa, addressed the EP, emphasizing the EU leaders’ focus on competitiveness and common prosperity at the March meeting. Costa noted a clear sense of urgency regarding defense and competitiveness, calling for urgent bureaucracy reduction, promotion of the Savings and Investment Union, and approval of a global framework for greater, better, faster, and joint investment in defense.