European Commission President Ursula von der Leyen said the EU is prepared for every scenario after President Donald Trump threatened new auto tariffs.
This escalation threatens to destabilize the trade relationship between the world's two largest economic blocs. A trade war involving the automotive sector could disrupt global supply chains and increase costs for consumers across both continents.
President Trump threatened to impose a 25% tariff [1] on European cars. The U.S. president said the EU failed to comply with a tariff agreement that both parties reached last summer in 2023 [2].
Von der Leyen spoke from Brussels, where she reaffirmed the bloc's commitment to the existing trade deal. She said the EU remains dedicated to the terms of the previous agreement, a stance that emphasizes the bloc's desire for stability over volatility.
Trade officials from the EU and U.S. are scheduled to meet in Paris. These discussions will take place on the sidelines of the upcoming G7 summit to address the dispute.
The EU has not specified its exact countermeasures but indicated it is ready for any outcome. The automotive industry remains a primary point of contention, as the U.S. seeks stricter compliance with the 2023 terms [2].
“The EU is prepared for every scenario”
The friction over the 2023 trade agreement suggests a shift toward more aggressive protectionism in U.S. trade policy. By preparing for 'every scenario,' the EU is signaling that it may be forced to implement retaliatory tariffs if diplomatic efforts in Paris fail, potentially sparking a broader trade conflict.
