EU Chief Ursula von der Leyen Vows Retaliation Against U.S. Tariffs

Ursula von der Leyen, the head of the European Commission, has made it clear that the European Union won’t sit quietly as the United States rolls out new tariffs. Speaking from Samarkand, Uzbekistan, where she’s attending an EU-Central Asia summit, she called President Donald Trump’s tariff plan a “huge hit to the global economy.” She promised that the EU is getting ready to push back if talks with the U.S. don’t work out.

Trump’s latest move, announced on Wednesday, slaps a 10% tariff on everything the U.S. imports, with an even tougher 20% rate aimed at the EU starting April 9. This comes after earlier U.S. tariffs on steel and aluminum, and now the EU is dusting off a retaliation plan worth up to 26 billion euros (28.4 billion USD) targeting American products. The first round of this payback is set to kick in by mid-April, picking up where a paused deal from the Biden days left off. Von der Leyen said more steps are coming, adding, “We’re lining up extra measures to protect our businesses and people.”

The EU isn’t stopping at tariffs either, it might block U.S. companies from bidding on European government contracts or limit their reach in areas like banking and tech. Von der Leyen took issue with how the U.S. is counting things like Europe’s value-added tax (VAT) as part of its tariff excuse, saying it’s unfair pressure. She pointed out that VAT is just like sales tax in the U.S., not some trade trick.

While she’s willing to talk things out, von der Leyen made it clear that Trump’s tariff-heavy approach could spark bigger problems. “We’d rather sort this out through discussion, but we’re ready to act if we have to,” she said. Markets are already jittery, with stocks dropping as worries about a trade war grow. Other countries like China, hit with a 34% tariff, and Japan and South Korea are also planning to hit back.