Von der Leyen said that as part of its response, the EU would further diversify its trading partnerships and “double down” on the internal EU Single Market. File
| Photo Credit: Reuters
On the eve of U.S. President Donald Trump’s sweeping ‘reciprocal tariffs’ on April 2, the E.U. and U.K. had starkly contrasting responses planned, with the E.U. gearing up for retaliation and the U.K. bracing for impact and deciding for now not to impose retaliatory tariffs as it hopes to reach a deal with Mr. Trump.
On Tuesday (April 1, 2025), European Commission President Ursula von der Leyen said the bloc was considering the use of all of its policy instruments in response to Mr. Trump’s move.
“Europe has not started this confrontation. We do not necessarily want to retaliate, but we have a strong plan to retaliate if necessary,” she said, arguing that the trade relationship with the U.S. when goods and services were considered, was close to being balanced and urging a solution to the brewing trade war.
Mr. Trump had already announced tariffs on all countries for their exports of steel, aluminium, automobiles and auto parts to the U.S. Now, Washington is set to impose reciprocal tariffs on its trading partners on Wednesday (April 2, 2025), which Mr. Trump has termed ‘Liberation Day’ in America. Reciprocal tariffs – which are country-specific – are based on the idea that the U.S. will charge its partners tariffs equal to the tariffs it is charged by them. The details of how the tariffs will be worked out for each country are unclear.
On Tuesday (April 1, 2025), Ms. Von der Leyen said that as part of its response, the EU would further diversify its trading partnerships and “double down” on the internal EU Single Market.
Listing some of the bloc’s trading relationships, she said that Brussels was hoping to conclude a trade deal with New Delhi by the end of this year. The cabinet of EU Commissioners had visited India at the end of February to boost the partnership and the two sides had resumed trade talks, holding discussions in Brussels in March.
“I hear Americans when they say some others have taken advantage of the rules. I agree. We also suffer from it. So let us work on it,” Ms. Von der Leyen said.
In the U.K., where Britons face an increasing cost of living and lower economic growth projection for 2025 than previously forecasted, there were no plans for immediate retaliation against the U.S. The apparent bonhomie between U.K. Prime Minister Keir Starmer and Mr. Trump and the fact that the two countries are negotiating a trade deal have not translated into a tariff exemption for the U.K.
Mr. Starmer expressed optimism about concluding a deal with the U.S. quickly and said that such an agreement would “mitigate” the impact of tariffs, in an interview with Sky News. The Prime Minister said he was talking to the sectors the tariffs would impact and that all options were on the table. However, he repeatedly said a trade war was not in the U.K.’s interest. He sidestepped a question on whether he was being “played” by Mr. Trump.
“This is clearly a very significant development,” U.K. Trade and Business Secretary Johnathan Reynolds said. In an interview with the BBC. The trading relationship between the two countries was fair and balanced, Mr. Reynolds said, adding that no need for the U.S. to include the U.K. in the April 2 tariff round.
Responding to a question on why the U.K. did not strike a deal and get an exemption, Mr. Reynolds said that he believed the U.S. wanted all its trading partners to face tariffs on April 2.
“Whether the U.S. is willing to come to agreement with countries is a decision for the U.S., but I believe the work we have done has made that possible, if that’s the direction they want to go in.”
This was an opportunity to strengthen the U.K.’s trade ties with other areas, Mr. Reynolds said, as he named India, the Gulf Cooperation Council and the European Union, entities with whom London is currently engaged in trade talks.
Published – April 02, 2025 11:29 am IST