ABB-EU Trade War: EU Issues Retaliation Warning to the US

The President of the European Commission, Ursula von der Leyen, stated that the EU would retaliate if the US imposed tariffs on the EU. von der Leyen emphasized, “Let me be clear, we are one of the world’s largest markets. We will use all necessary tools to protect our economic security and interests.” Speaking at the Munich Security Conference in Germany, von der Leyen pointed out that a commercial approach to global issues has been displayed recently, highlighting the need for Europe to adapt and be smart and open-minded in this new reality. She stressed that the EU is focused on enhancing competitiveness, strengthening defense, and innovating in artificial intelligence. Taking action in the new reality is crucial for von der Leyen. She suggested that a stronger Europe collaborating with the US against common threats would be beneficial, adding, “That is why we believe that trade wars and punitive tariffs make no sense.” von der Leyen warned about the impact of customs tariffs on taxes and potential inflation, stating, “We know how quickly customs duties can affect transatlantic supply chains. We do not believe this is a good idea.” She declared, “If the US imposes tariffs on the EU, we will retaliate. Unjust tariffs against the EU won’t go unanswered. Let me be clear, we are one of the world’s largest markets. We will use all necessary tools to protect our economic security and interests. We will protect our workers, businesses, and consumers at all stages.” Von der Leyen also expressed readiness to work on a deal that would benefit all parties involved.