European Commission President Ursula von der Leyen described Trump's universal tariffs as a 'major blow to the world economy' and said that the EU is preparing countermeasures in response to the latest levies.

"We are now preparing for further countermeasures to protect our interests and our businesses if negotiations fail," said the chief, highlighting that the EU will not stand still as Trump’s policies disrupt trade.

Trump sparked global trade war fears throughout the world on Wednesday by announcing a minimum duty of 10% on the majority of goods imported into the country, with a higher charge of 20% for the EU.

“We do not necessarily want to retaliate but, if it is necessary, we have a strong plan to retaliate and we will use it.” Ursula von der Leyen said in a speech. However, von der Leyen held hope for diplomacy; acknowledging the gravity of the situation, she left the door open for discussion by stating that "it is not too late to address concerns through negotiations."

“We will approach these negotiations from a position of strength. Europe holds a lot of cards, from trade to technology to the size of our market,” she added. “But this strength is also built on our readiness to take firm countermeasures if necessary. All instruments are on the table.”

Though she has not laid out details of future EU plans for response, it is expected to include tariffs on American goods, with a focus on politically sensitive industries. To plan a coordinated reaction, Brussels has been in contact with other impacted countries, such as China, Canada, and India.

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