EU has ‘strong plan’ in place for Trump’s tariffs: Von der Leyen

U.K. prepares for tariffs post-failure to secure exemption, while EU plans retaliation against Trump's reciprocal tariffs.

On the eve of U.S. President Donald Trump’s sweeping ‘reciprocal tariffs’ on April 2, the E.U. and U.K. had starkly contrasting responses planned, with the E.U. gearing up for retaliation and the U.K. bracing for impact and deciding for now not to impose retaliatory tariffs as it hopes to reach a deal with Mr. Trump.

On Tuesday (April 1, 2025), European Commission President Ursula von der Leyen said the bloc was considering the use of all of its policy instruments in response to Mr. Trump’s move.

“Europe has not started this confrontation. We do not necessarily want to retaliate, but we have a strong plan to retaliate if necessary,” she said, arguing that the trade relationship with the U.S. when goods and services were considered, was close to being balanced and urging a solution to the brewing trade war.

Mr. Trump had already announced tariffs on all countries for their exports of steel, aluminium, automobiles and auto parts to the U.S. Now, Washington is set to impose reciprocal tariffs on its trading partners on Wednesday (April 2, 2025), which Mr. Trump has termed ‘Liberation Day’ in America. Reciprocal tariffs – which are country-specific – are based on the idea that the U.S. will charge its partners tariffs equal to the tariffs it is charged by them. The details of how the tariffs will be worked out for each country are unclear.

On Tuesday (April 1, 2025), Ms. Von der Leyen said that as part of its response, the EU would further diversify its trading partnerships and “double down” on the internal EU Single Market.

Listing some of the bloc’s trading relationships, she said that Brussels was hoping to conclude a trade deal with New Delhi by the end of this year. The cabinet of EU Commissioners had visited India at the end of February to boost the partnership and the two sides had resumed trade talks, holding discussions in Brussels in March.

“I hear Americans when they say some others have taken advantage of the rules. I agree. We also suffer from it. So let us work on it,” Ms. Von der Leyen said.