E.U. chief says bloc ‘prepared to respond’ to Trump tariffs, but keeps door open for negotiations

European Commission President Ursula von der Leyen. File.
| Photo Credit: Reuters

Hours after U.S. President Donald Trump announced tariffs on America’s trade partners, including 20% on E.U. goods, European Commission President Ursula von der Leyen said the bloc was “prepared to respond”, even as she appeared to keep the door open for negotiations.

“I deeply regret this choice,” she said, referring to Mr. Trump’s tariffs, as she delivered a video broadcast on Thursday morning. The U.S. President had announced a baseline tariff of 10% on all goods coming into the U.S., with some countries and entities facing higher tariffs, roughly at half the average tariff rate charged by them for U.S. goods, as per Mr. Trump. The U.S. would charge China 34%, India 26% and Vietnam 46%. Non-EU European countries were taxed at different rates: the U.K. at 10% and Switzerland at 31%.

Tariffs would hurt people across the world, Ms. Von der Leyen said, adding that there was no clear path through the uncertainty.

“And what is more, there seems to be no order in the disorder. No clear path through the complexity and chaos that is being created as all U.S. trading partners are hit,” she said.

The E.U. had already announced last month h that it was preparing to respond to Mr. Trump’s tariffs on steel and aluminium. Ms. Von der Leyen confirmed that process was underway.

“And we are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail,” Ms. Von der Leyen added. The bloc’s executive head also said that the E.U. was watching for indirect impacts on Mr. Trump’s announcement , i.e., in terms of the dumping of cheap goods by third countries, whose exports were originally intended for the U.S.

Ms. Von der Leyen appeared to offer an off-ramp though saying there are ”others“ taking advantage of the trading system and that she was ready to assist in making the international trading system “fit for the realities” of a global economy.

“But I also want to be clear: Reaching for tariffs as your first and last tool will not fix it,” she added.

Earlier this week , Ms. Von der Leyen said the E.U. would be looking at removing bureaucratic and regulatory challenges to trade within its borders as part of the strategy to counter Mr. Trump’s moves. On Thursday, she told Europeans who were feeling let down by their “oldest ally” that with a strength of 450 million, the European Single Market was their “safe harbour” in difficult times.