‘Will retaliate, if necessary’: EU chief warns US of ‘strong plan’ against Trump tariffs
World | The tariffs imposed on steel and aluminium by the Trump administration in March, along with higher levies on cars, will take effect on Thursday (Apr 3).
The European Union has a “strong plan” to retaliate against the tariffs imposed by US President Donald Trump, but would prefer to negotiate a solution, European Commission head Ursula von der Leyen said on Tuesday (Apr 1).
The tariffs imposed on steel and aluminium by the Trump administration in March, along with higher levies on cars, will take effect on Thursday (Apr 3). Trump will also lay down plans for “reciprocal tariffs” on Wednesday (Apr 2).
Also read | Planning to buy a new car? Here's how it will cost an arm and a leg after Trump's reciprocal tariffs
‘Strong plan to retaliate’
During a speech to the European Parliament in Strasbourg, von der Leyen said that many Europeans were “utterly disheartened” after US announcements.
“Europe has not started this confrontation. We do not necessarily want to retaliate, but if it is necessary we have a strong plan to retaliate and we will use it,” she said.
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She said she understood US arguments that others took advantage of global trade rules and that the US wanted to re-industrialise. She added that the EU had suffered too and wanted the same.
However, the EU executive chief said the US tariffs will fuel inflation through taxes on consumers. It will also cost jobs as American factories pay more for components.
“Our objective is a negotiated solution. But of course, if need be, we will protect our interests, our people, and our companies,” she said.
EU internal barriers
Von der Leyen also said that the EU should diversify its trade and eliminate internal barriers to international business in its single market.
Also read | US stagflation fears rise ahead of tariff hit
According to the International Monetary Fund, Europe's internal market barriers were equal to a 45 per cent tariff for manufacturing and 110 per cent for services.
In the next month, the Commission will put forth proposals to remove some barriers and avoid new ones, she told EU lawmakers.
(With inputs from agencies)
