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Europe's response to Trump's tariff plans
Europe has a well-prepared response ready to counteract any tariff increases by the United States if necessary, according to Ursula von der Leyen, the president of the European Commission. In anticipation of President Donald Trump's announcement on April 2 regarding significant new tariffs, von der Leyen emphasized that Europe was not seeking confrontation but would retaliate if required. She made it clear that Europe had a solid strategy in place, relying on its strengths in trade, technology, and market size.
In recent weeks, Trump has been promoting April 2 as “Liberation Day,” when his administration plans to impose higher tariffs on imports like steel, aluminum, and automobiles. While von der Leyen stressed Europe's openness to negotiations, she also pointed out that the European Union holds substantial leverage and is prepared to take decisive countermeasures if necessary. Europe’s previous response to Trump's tariffs on steel and aluminum, which included countermeasures on $28 billion worth of U.S. goods, demonstrated its readiness to act.
Von der Leyen also highlighted the importance of the U.S.-EU trade relationship, which is worth $1.5 trillion. The EU is one of the largest buyers of American exports, and both sides have significant economic stakes in maintaining their trade ties.
In addition to Europe, other countries like Canada, China, Japan, and South Korea are preparing their own retaliatory actions. These nations, especially China, have already begun imposing tariffs on U.S. imports in response to Trump's previous actions. Canadian Prime Minister Mark Carney has also indicated that Canada will impose retaliatory tariffs on U.S. goods if Trump follows through with his proposed tariff increases.
The ongoing trade tensions between the U.S. and its global partners are poised to escalate, with much at stake for both sides.