The European Union said it will use a broad range of options to retaliate against the US if President Donald Trump follows through on his threat to impose so-called reciprocal tariffs on the bloc this week.
“We do not necessarily want to retaliate,” European Commission President Ursula von der Leyen said on Tuesday. “If necessary we have a strong plan to retaliate and will use it.”
The US intends to impose sweeping tariffs on global partners as soon as Wednesday. Trump has said the measures will rectify tariffs as well as non-tariff barriers that he says are unfair, such as domestic regulations and how countries collect taxes, including the EU's value-added tax. The EU says its VAT is a fair, non-discriminatory tax that applies equally to domestic and imported goods.
France and other countries have called on trade officials to consider using the bloc's anti-coercion instrument — a tool designed to strike back against nations that use trade and economic measures coercively. Such a move could lead to restrictions on trade and services as well as certain intellectual property rights, foreign direct investment and access to public procurement, Bloomberg previously reported.
Von der Leyen said that the goal is a “negotiated solution” once the so-called reciprocal tariffs are announced. They are expected to enter into force in parallel with additional 25% tariffs on all the cars imported to the US and 25% duties on steel and aluminum imports from global partners. The EU is preparing countermeasures on up to €26 billion of US goods.
Europe did not start the tariff confrontation.
Tariffs are taxes, paid by the people.
But Europe has everything to protect our people and our prosperity.
We will always promote & defend our interests and values.
And we will always stand up for Europe. https://t.co/l4xeJOASczVon der Leyen mentioned that Europe's strength lies not only in trade but also in technology, hitting at the relevance of the European business for large US tech firms that the EU could target as part of the retaliatory measures. The commission could use various legal instruments to restrict access to government contracts or digital advertising sales in a market worth around €100 billion.
“Europe holds a lot of cards,” von der Leyen said. “From trade to technology to the size of our market. But this strength is also built on our readiness to take firm countermeasures. All instruments are on the table.”
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