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Ursula von der Leyen has hit back at Donald Trump’s latest tariff threat, stressing the United States is constrained by a limit that prevents it from increasing duties on its own.
The US president shocked Europeans last week when he suddenly threatened to raise tariffs on EU-made cars from 15% to 25%, alleging non-compliance.
“A deal is a deal, and we have a deal. And the essence of this deal is prosperity, common rules and reliability,” von der Leyen said on Tuesday in Armenia.
“We want from this work (to achieve) mutual gain, cooperation and reliability. And we’re prepared for every scenario,” she added, hinting at potential retaliation.
The president of the European Commission, who oversees trade policy, said the bloc was “in the final stages” of implementing the pillar of the EU-US trade deal designed to eliminate tariffs on a wide range of American products.
The legislation is being negotiated in the European Parliament, where it has been previously delayed due to Trump’s forceful attempt to seize Greenland from Denmark. MEPs have amended the original text to strengthen safeguards.
According to the joint statement published by Brussels and Washington last year, the US was meant to lower tariffs on EU-made cars upon the introduction of the legislation, rather than its final approval. At the same time, the US committed to an all-inclusive cap of 15% on EU goods, precluding the accumulation of additional duties.
“The alignment with the agreed ceiling is still outstanding,” von der Leyen said, demanding respect for the “different democratic procedures”.
Speaking by her side, António Costa, the president of the European Council, said the 27 member states “fully” supported the work of the Commission and its president.
Since Trump posted his threat on Friday, Brussels has been seeking “clarity” from Washington about the reasoning behind it while signalling its readiness to respond.
Maroš Šefčovič, the European Commissioner for Trade, is expected to meet with Jamieson Lee Greer, the US Trade Representative, later on Tuesday on the sidelines of a G7 gathering in Paris, France, to discuss the matter.
Trump’s announcement has been linked to the comments recently made by German Chancellor Friedrich Merz, who said Iran had “humiliated” the US in the war. Germany is the largest carmaker in Europe and is heavily dependent on exports.
Merz has denied any connection between his remarks and the 25% tariff.
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