Published by Global Banking & Finance Review®
Posted on April 1, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleThe EU is prepared to retaliate against US tariffs but prefers negotiation, says Ursula von der Leyen. The EU plans to diversify trade and reduce internal barriers.
BRUSSELS (Reuters) - The European Union has a "strong plan" to retaliate against tariffs imposed, and set to be imposed, by U.S. President Donald Trump, although it would prefer to negotiate a solution, EU executive chief Ursula von der Leyen said on Tuesday.
The Trump administration put in place tariffs on imported steel and aluminium in March and higher duties on cars will take effect on Thursday. Trump will also set out plans for "reciprocal tariffs" on Wednesday.
Von der Leyen said she understood U.S. arguments that others had taken advantage of global trade rules, adding the EU had suffered too. She also said she understood the U.S. wanted to re-industrialise, as does the EU.
However, she said U.S. tariffs were taxes on its consumers that would fuel inflation and make American factories pay more for components, costing jobs.
"Our objective is a negotiated solution. But of course, if need be, we will protect our interests, our people, and our companies," von der Leyen said in a speech to the European Parliament in Strasbourg.
"We do not necessarily want to retaliate. But if it is necessary, we have a strong plan to retaliate and we will use it."
Von der Leyen also said the EU should diversify its trade and remove internal barriers to cross-border business in its single market.
She said the International Monetary Fund had estimated that Europe's internal market barriers were equivalent to a 45% tariff for manufacturing and 110% for services.
She told EU lawmakers that the Commission would come up with proposals next month to remove some barriers and prevent new ones.
(Reporting by Bart Meijer and Philip Blenkinsop. Editing by Sudip Kar-Gupta and Mark Potter)
The article discusses the EU's plan to retaliate against US tariffs while preferring a negotiated solution.
US tariffs could increase costs for American consumers and impact job creation by raising component prices for factories.
The EU plans to diversify trade and remove internal market barriers to enhance cross-border business.
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