EU ready to retaliate against Trump's impending tariffs

In Brussels on April 1, 2025, European Commission President Ursula von der Leyen addressed EU lawmakers regarding the impending tariffs set to be announced by U.S. President Donald Trump. Von der Leyen asserted that the European Union, the largest trade bloc in the world, possesses significant leverage, stating they 'hold a lot of cards' in the negotiations. During this session, she emphasized the readiness of the EU to implement a strong retaliatory plan if necessary. This statement comes right before Trump's intention to unveil a suite of tariffs, dubbed 'Liberation Day', which he believes will liberate the U.S. from reliance on foreign goods. The EU has expressed deep concern regarding this approach, arguing that it would likely lead to a trade war, increased inflation, and economic hardship for both Americans and Europeans. Von der Leyen highlighted that the tariffs imposed by the U.S. are essentially taxes that will burden consumers in America by increasing prices on essential goods like groceries and medication. The EU has been monitoring these trade tensions closely, indicating intentions to impose duties on U.S. goods worth approximately $28 billion in response to Trump's previously implemented tariffs on steel and aluminum. The EU's response will predominantly focus on products impacted the most, including textiles, home appliances, and agricultural products. Ultimately, von der Leyen advocated for constructive dialogue between the EU and the U.S., asserting that there is a better path forward for both economies, rather than escalating tensions through additional tariffs and counter-measures. She maintained that trade wars would not benefit either party but instead impose economic strain across the board.