BRUSSELS (Reuters) – The European Union (EU) has a “solid plan” to retaliate with the tax rights imposed, and about to be imposed, by American president Donald Trump, although she would prefer to negotiate a solution, said the president of the European Commission on Tuesday, Ursula von der Leyen.

The Trump administration has set up customs duties on steel and aluminum imported in March and higher customs duties on cars will come into force on Thursday. President Donald Trump will also present so -called “reciprocal” customs duties on Wednesday.

Ursula von der Leyen said that she understood the arguments of the United States that others had benefited from the rules of world trade, adding that the EU had also suffered.

However, she warned that the customs duties decided by Washington constituted taxes on American consumers likely to fuel inflation. These surcharges can also make components purchased by American factories more expensive, at the risk of causing job losses.

“Our goal is to achieve a negotiated solution. But of course, if necessary, we will protect our interests, our citizens and our businesses,” said Ursula von der Leyen during a speech by the European Parliament in Strasbourg.

“We do not necessarily want to exercise reprisals. But if necessary, we have a solid plan and we will use it,” she added.

Ursula von der Leyen also said that the EU should diversify its trade and remove internal obstacles to cross -border trade in its domestic market.

She recalled that the International Monetary Fund (IMF) estimated that obstacles to the European internal market is equivalent to customs duties of 45% for manufacturing industry and 110% for services.

Ursula von der Leyen told MEPs that the European Commission would present proposals next month to remove certain obstacles and prevent new ones.

(Written by Bart Meijer and Philip Blenkinsop, Mara Vîlcu for the , edited by Blandine Hénault)

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