Europe says it holds alot of trade cards on eve of Trump’s tariff ’Liberation Day’
Published Apr 01, 2025 • 1 minute read
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European Commission president Ursula von der Leyen addresses European Parliament members on new plans to ramp up defense spending agreed at last week's summit, Tuesday, March 11, 2025 at the European Parliament in Strasbourg,France. Photo by Pascal Bastien /APBRUSSELS — A top European Union official warned the U.S. on Tuesday that the world’s biggest trade bloc “holds a lot of cards” when it comes to dealing with the Trump administration’s new tariffs and has a good plan to retaliate if forced to.
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U.S. President Donald Trump has promised to roll out taxes on imports from other countries on Wednesday. He says they will free the U.S. from reliance on foreign goods.
He’s vowed to impose “reciprocal” tariffs to match the duties that other countries charge on U.S. products, dubbing April 2 “Liberation Day.”
“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,” European Commission President Ursula von der Leyen told EU lawmakers.
The commission, the EU’s executive branch, negotiates trade deals on behalf of the bloc’s 27 member countries and manages trade disputes on their behalf.
“Europe holds a lot of cards, from trade to technology to the size of our market. But this strength is also built on our readiness to take firm counter measures if necessary. All instruments are on the table,” von der Leyen said, at a European Parliament session in Strasbourg, France.
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The commission already intends to impose duties on U.S. goods worth some $28 billion in mid-April in response to Trump’s steel and aluminum tariffs. The EU duties will target steel and aluminum products, but also textiles, home appliances and farm goods.
A lot remains unknown about how Trump’s levies will actually be implemented, notably the “reciprocal” tariffs, and the EU wants to assess their impact before taking retaliatory action.
“So many Europeans feel utterly disheartened by the announcement from the United States,” von der Leyen said. “This is the largest and most prosperous trade relationship worldwide. We would all be better off if we could find a constructive solution.”
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