E.U. preparing further countermeasures against U.S. tariffs if negotiations fail: EC President von der Leyen

The European Union is preparing further countermeasures against U.S. tariffs if negotiations fail, according to European Commission President Ursula von der Leyen.

President Donald Trump had imposed 20% tariffs on the bloc on Wednesday.

Speaking on a livestreamed broadcast, von der Leyen said that Trump’s move was a “major blow” to the world economy.

“There seems to be no order in the disorder, no clear path to the complexity and chaos that is being created as all U.S. trading partners are hit,” she said.

“Uncertainty will spiral and trigger the rise of further protectionism, [and] the consequences will be dire for millions of people around the globe, also for the most vulnerable countries, which are now subject to some of the highest U.S. tariffs.”

Von der Leyen said she agreed with Trump that some countries were taking unfair advantage of the current rules in world trade and that the E.U. was ready to support efforts to make the global trading system “fit for the realities of the global economy.”

However, she also warned the U.S. that “reaching for tariffs as your first and last tool will not fix it.”

The bloc had previously announced retaliatory duties after the U.S. imposed tariffs last month in a bid to protect European workers and consumers. The E.U. said at the time that it would introduce counter-tariffs on 26 billion euros ($28 billion) worth of U.S. goods.

Previously suspended duties — which were at least partially in place during Trump’s first term as president — are set to be reintroduced alongside a slew of additional duties on further goods.

Industrial-grade steel and aluminum and other steel and aluminum semi-finished and finished products, along with their derivative commercial products such as machinery parts and knitting needles, were set to be included. A range of other products such as bourbon, agricultural products, leather goods, home appliances and more were also on the E.U.’s list.

Following a postponement, these tariffs are expected to come into effect around the middle of April.