Europe's tariff war with the US intensifies

Ursula von der Leyen, expressing deep disappointment with the recent US decisions, told the European Parliament: "Let me be clear; Europe did not initiate this confrontation. We consider this policy wrong. But my message to you is this: we have everything we need to defend our people, our economy and our values."

Referring to the US announcement of 25% tariffs on steel, aluminum, cars, auto parts, and planned tariffs on pharmaceuticals and wood, she added: “These tariffs are a tax that the American people will pay for food and medicine. This policy will increase inflation and threaten jobs. We do not want confrontation, but if necessary, we will respond.”

The President of the European Commission stated: “We have the largest integrated market in the world. We have the power to negotiate. We have the power to pressure. And the people of Europe must know that together, we will defend our interests and values. We do not want to retaliate, but if we have to, we have a countermeasure plan and we will use it.”

The announcement comes as US President Donald Trump is set to unveil his full tariff package tomorrow (Wednesday). A White House spokesman has described the day as “America’s Economic Liberation Day.” Trump has previously threatened to impose sweeping tariffs on countries with a negative trade balance with the US, a stance that echoes his administration’s policies during his first term.

Meanwhile, the conservative British government has expressed displeasure over the introduction of the tariffs but has refrained from reacting harshly.

On the eve of the official announcement of the new US tariffs on imports from Europe, the British Prime Minister stressed that he did not welcome the White House's decision and that all options, including trade countermeasures, were "on the table" to respond to this measure.

Claiming that trade talks between London and Washington had made "good progress", Keir Starmer stressed that his government did not want to escalate tensions, but if the US imposed new tariffs, it would be forced to defend the country's economic interests.

In an interview with Sky News, he stated: "These tariffs will most likely be applied. Nobody welcomes this measure and nobody wants a trade war. But I have to act in the national interest and that means all options must remain on the table."

Starmer, while warning against hasty reactions, added: "We are negotiating an economic agreement and we have made significant progress in the past few weeks; "A development that usually takes months or years. So the best approach is to stay calm and avoid emotional reactions."