Europe warns “strong plans to retaliate” the day before launching Trump’s new tariffs

A top EU official warned on Tuesday that the world’s largest trading group “has a lot of cards” in handling new tariffs from the Trump administration and has a good plan if forced to retaliate.

U.S. President Donald Trump promised import taxes on other countries on Wednesday. He said they will save the United States from relying on foreign goods.

He vowed to impose “reciprocity” tariffs on responsibilities other countries receive on U.S. products, and dubbed on April 2 “Liberation Day.”

European Commission President Ursula Von Der Leyen told EU lawmakers: “This confrontation has not begun in Europe. We don’t have to retaliate, but if it is necessary, we have strong plans to retaliate and we will use it.”

The EU Executive Committee negotiates trade deals on behalf of the group’s 27 member states and manages trade disputes on their behalf.

“Europe has many cards, from trade to technology to our market size. However, this advantage is also built upon our preparation for the exact measures. All tools are on the table,” Von der Leyen said at the European Parliament meeting in Strasbourg, France.

The commission has intended to impose tariffs on U.S. goods in mid-April to deal with Trump’s steel and aluminum tariffs. The EU’s responsibilities will target steel and aluminum products, as well as textiles, household appliances and agricultural products.

It remains unclear about how Trump’s levy, especially “reciprocal” tariffs, the EU hopes to assess its impact before taking retaliatory actions.

“So many Europeans are totally frustrated by the announcement of the United States,” von der Leyen said. “It’s the largest and most prosperous trade relationship in the world. If we can find a constructive solution, we will all be better.”