European Commission President Ursula von der Leyen rejected a threat by U.S. President Donald Trump to raise tariffs on EU-made cars on Tuesday.

The dispute threatens to destabilize trade relations between the two economic powers and could disrupt the global automotive supply chain.

Von der Leyen spoke from the European Commission headquarters in Brussels, where she rebuffed the move to unilaterally hike tariffs. She said that the EU is prepared for every scenario [2]. The European leader emphasized the importance of existing agreements to maintain stability in transatlantic trade.

"A deal is a deal," von der Leyen said [1].

The tension follows an announcement by Trump on Friday that he would increase tariffs on cars and trucks from the European Union to 25% this week [3]. This proposed increase comes despite an existing trade deal where the EU maintains a 15% tariff on U.S. cars [4].

Von der Leyen said the current trade agreement remains valid and urged the U.S. administration to honor the established terms. The European Commission has not yet announced specific retaliatory measures, but the leadership said that the bloc is ready for any outcome [2].

Trade officials in Brussels have monitored the situation since the Friday announcement. The automotive sector is a primary pillar of the European economy, making the potential for a trade war a significant risk for industrial output across the continent.

“"A deal is a deal."”

This escalation signals a shift toward protectionism in U.S.-EU relations, challenging the stability of previous trade agreements. By asserting that the EU is prepared for any scenario, von der Leyen is signaling that the bloc may implement its own retaliatory tariffs if the U.S. proceeds, which could lead to a broader trade conflict affecting multiple sectors beyond the automotive industry.