The European Union (EU) is prepared to retaliate against President Trump’s existing and upcoming tariffs, although the trade bloc is open to negotiations with Washington, according to European Commission President Ursula von der Leyen. 

In a Tuesday speech, von der Leyen said that Europe “did not start this confrontation,” that the EU does not “necessarily want to retaliate, but we have a strong plan to retaliate if necessary.” 

“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,” von der Leyen said in the 11-minute speech in Strasbourg, France. “But this strength is also built on our readiness to take firm countermeasures if necessary. All instruments are on the table.”

EU chief said the 27-member union's strategy to combat the looming tariffs that are set to be announced on Wednesday consists of three pillars: a willingness to negotiate, an emphasis on trade diversification with other partners and a push to “unchain the Single Market.” 

“The Single Market was born to tear down barriers between our countries. To erase customs and duties. And to make business easy inside Europe,” the EU head said on Tuesday. “We must go back to that idea and fulfil it.” 

Von der Leyen spoke a day before Trump is set to unveil additional tariffs on the so-called “Liberation Day.” 

Tariffs on aluminum and steel went into effect last month, which has had an impact on the EU’s industries. Last week, Trump said he would impose a 25 percent tariff on foreign cars, while an additional tax on incoming car parts is set to take place in early May. 

Reciprocal tariffs are slated to start this week also, with Trump telling reporters on Sunday that all nations will be affected, but some breaks could be offered along the way. 

The president and his allies have argued that the U.S. has long been tangled into unreasonable and counter-productive trade deals. The tariff agenda would boost manufacturing domestically and contribute better to the growth of the job market in the long-term, according to Trump. 

Von der Leyen warned Americans on Tuesday that tariffs are “taxes that will be paid by the people.” 

“Tariffs are taxes for the Americans on their groceries and their medication. Tariffs will just fuel inflation. Exactly the opposite of what we want to achieve. American factories will pay more for components that are produced in Europe,” the EU chief stated. “This will cost jobs. It will create a bureaucratic monster of new customs procedures. And today nobody needs that – neither in the US nor in Europe.”