The European Union is prepared for all scenarios, according to European Commission President Ursula von der Leyen, after US President Donald Trump announced on Friday that tariffs on European cars would rise to 25%.
Von der Leyen and Trump concluded a trade agreement in Turnberry, Scotland, in July after the US had unilaterally imposed trade tariffs. It was agreed that US tariffs on European products would not exceed 15%.
US Trade Representative Jamieson Greer told news channel CNBC on Monday that the US considers it appropriate to raise tariffs because the EU has not yet fulfilled any of its commitments and the European Parliament has added amendments to the agreement.
Greer is meeting European Commissioner for Trade Maroš Šefčovič in Paris on Tuesday.
The European Commission, however, emphasises that it has, for its part, begun implementing the deal and will continue to do so, and a spokesperson stated on Monday that the EU "will not engage in an escalation of threats".
"A deal is a deal," Commission President Ursula von der Leyen also reiterated on Tuesday following the EU-Armenia summit.
"We are applying the agreement, with respect for democratic procedures on both sides," she said. "The EU is in the final phase of implementing certain tariff commitments, while the US, for example, has not yet applied the agreed ceiling."
"We want mutual benefit, cooperation and reliability, and we are ready for any scenario," Von der Leyen concluded.
She did not specify what measures the EU might take, but a spokesperson said on Monday that no options had yet been ruled out.
The EU had previously drawn up a list of products worth around €100 billion on which it could impose tariffs itself, and it may also decide to activate the so-called trade bazooka.
