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European Commission president Ursula von der Leyen insisted that the EU continued to seek a “negotiated solution” but highlighted that the economic bloc also held “many cards” and would not shy away from stepping up its retaliatory measures.
In a speech at the European Parliament, European Commission President Ursula von der Leyen vowed that the EU would not retaliate against the US over the tariff war. However, she said, if necessary, it would shape a strong plan to retaliate.
US President Donald Trump announced a sweeping new tariff plan on imported goods from around the world on Monday, referring to Wednesday, the day for which the tariffs’ roll-out is expected, as “Liberation Day” for American consumers.
European Commission president Ursula von der Leyen insisted that the EU continued to seek a “negotiated solution” but highlighted that the economic bloc also held “many cards” and would not shy away from stepping up its retaliatory measures.
While Trump said that the tariffs on imported products from other countries would free the US from relying on foreign goods, the announcement has dampened the confidence of major banks in the US’ economic outlook.
Goldman Sachs notably raised the probability of a US recession to 35 percent, up from 20 percent previously. Von der Leyen said that the tariffs would also fuel inflation in the US and that they “will create a bureaucratic monster of new customs procedures.”
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It is unclear how the new tariffs would be implemented. The EU has announced it would assess the impact before taking retaliatory measures.
