The EU has a’strong plan’ in place to deal with Trump’s tariffs, and the UK will not retaliate. 

• EU is gearing up for retaliation against US President Donald Trump’s’reciprocal tariffs’.
 • UK is bracing for impact and deciding not to impose retaliatory tariffs.
 • European Commission President Ursula von der Leyen argues that the EU has a strong plan to retaliate if necessary.

 US’s Response
 • Trump has announced tariffs on all countries for their exports of steel, aluminum, automobiles, and auto-parts to the US.
 • Reciprocal tariffs are country-specific and are based on the idea that the US will charge its partners tariffs equal to the tariffs it is charged by them.
 • The EU plans to further diversify its trading partnerships and “double down” on the internal EU Single Market.

 UK’s Response
 • UK faces an increasing cost of living and lower economic growth projection for 2025.
 • There are no plans for immediate retaliation against the U.S.
 • Prime Minister Keir Starmer expressed optimism about concluding a deal with the U.S. quickly and said that such an agreement would “mitigate” the impact of tariffs.
 • U.K. Trade and Business Secretary Jonathan Reynolds stated that the trading relationship between the two countries is fair and balanced.