The European Union has warned that President Donald Trump’s threat to impose a 30% tariff on European goods risks severely damaging the world’s largest trading relationship. EU officials said Brussels is preparing possible retaliatory measures, while still hoping for a negotiated solution to avoid a trade war.

Brussels Signals Readiness for Retaliation

European Commission Vice President Maros Sefcovic said the proposed U.S. tariffs are “effectively prohibitive” and the EU must prepare for all outcomes, including well-considered, proportionate countermeasures. He stressed the bloc’s patience but warned that continued uncertainty cannot persist indefinitely.

France has pushed for a tougher stance, with Economy Minister Laurent Saint-Martin stating the EU should be ready to retaliate and could target services through its unused anti-coercion instrument.

EU Seeks Coordination, Aims to Avoid Escalation

The EU has extended its suspension of tariffs on $24.5 billion of U.S. steel and aluminum but retains a prepared package targeting $72 billion of American goods should retaliation become necessary.

The bloc is also strengthening ties with other nations facing Trump’s tariffs, including Canada and Japan, to coordinate potential responses. EU Commission President Ursula von der Leyen is expected to speak with Canadian Prime Minister Mark Carney.

European ministers reacted with concern and resolve. Finland’s Foreign Trade Minister Ville Tavio warned countermeasures would impact the U.S. economy too, while Denmark’s Lars Lokke Rasmussen emphasized the EU must be ready for both negotiation and retaliation.

“We want an agreement with the U.S., but it must be a fair deal,” Rasmussen said. “If you want peace, you have to prepare for war.”