The European Union is bracing for a trade showdown with the United States as new tariffs imposed by Washington send shockwaves through the global economy. European Commission President Ursula von der Leyen has called the US tariffs a “major blow” to international trade and warned that the EU is ready to retaliate if negotiations fail.

EU Prepares to Hit Back

Speaking ahead of an EU-Central Asia partnership summit in Uzbekistan, von der Leyen said, “We are already finalizing the first package of countermeasures in response to tariffs on steel. And we’re now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.”

The strong statement from the EU chief comes after former US President Donald Trump announced a sweeping tariff policy, imposing a 10% minimum tariff on most imported goods and a higher 20% tariff on products from the European Union.

Global Trade Faces Uncertain Future

Von der Leyen expressed serious concerns about the long-term impact of these tariffs. “The consequences of the US tariffs will be immense,” she warned. “The global economy will massively suffer, uncertainty will spiral, and trigger the rise of further protectionism.”

She also highlighted that the new trade barriers would have an especially negative effect on vulnerable economies that now face some of the highest tariffs imposed by the US.

Taiwan and Other Nations React

Beyond the EU, Taiwan has also expressed frustration over the tariff policy, calling it “very unreasonable.” Taiwan’s cabinet issued a statement on Thursday saying that the proposed tariff rate “does not reflect the actual situation of Taiwan-US trade” and pledged to raise the issue directly with Washington.

Meanwhile, the tariffs on imported automobiles have officially taken effect. As of 12:01 a.m. Eastern Time (0401 GMT), foreign-made cars and light trucks are subject to a 25% tariff, with automobile parts set to be impacted no later than May 3, according to a Federal Register notice cited by AFP.

Decades of Economic Cooperation at Risk

Von der Leyen emphasized the historical importance of US-EU trade relations, stating, “Over the past 80 years, the US and the EU have greatly benefited from their trading relationship. Consumers have enjoyed reduced prices, and businesses have had huge opportunities leading to unprecedented growth and prosperity.”

However, she acknowledged that the global trading system is not without its flaws. “At the same time, we know that the global trading system has serious deficiencies. I agree with President Trump that others are taking unfair advantage of the current rules, and I’m ready to support any efforts to make the global trading system fit for the realities of the global economy.”

Negotiations or a Trade War?

Despite her willingness to engage in discussions on fairer trade policies, von der Leyen strongly criticized the US approach. “But I also want to be clear. Reaching for tariffs as your first and last tool will not fix it. This is why from the outset we have always been ready to negotiate with the United States to remove the remaining barriers to trans-Atlantic trade.”

With tensions rising and countermeasures looming, the coming weeks will be critical in determining whether the US and EU can find common ground or if they are headed for an all-out trade war that could shake the foundations of the global economy.

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