We are now preparing for further countermeasures to protect our interests and our companies if the negotiations fail, she says in a live broadcast on Thursday morning.
The USA will introduce tariffs of 20 percent on goods from the EU next week, Trump announced on Wednesday evening.
Higher Cost of Living
Ursula von der Leyen calls Trump's message a major setback for the world economy.
I deeply regret this decision. Let us be clear about the enormous consequences. The global economy will suffer enormously, says von der Leyen, emphasizing that uncertainty and protectionism will affect the most vulnerable.
Millions of citizens will face higher food prices. Medicine will cost more, as will transportation. Inflation will rise, warns the EU chief.
The EU has already promised countermeasures in response to Trump's 25-percent tariffs on steel and aluminum. These are expected to come into force in mid-April, and the union is now preparing another package of measures to respond to Trump's sweeping import tariffs, which will not only affect the EU but also a large number of countries around the world.
Will Not Accept Dumping
The tariffs also risk creating indirect effects as trade in goods that were previously absorbed by the USA seeks out other markets, warns von der Leyen.
We will closely monitor the indirect effects of these tariffs, as we cannot absorb global overcapacity and will not accept dumping on our markets, she says.
Last week, we limited the amount of steel that can be imported to Europe duty-free. This will give more breathing room to these strategic industries. Now we will also convene strategic dialogues with the steel, automotive, and pharmaceutical sectors.
The EU's trade ministers will meet on April 7 to discuss the EU's response.
