EU has strong plan to retaliate against US tariffs if necessary – von der Leyen

• We do not necessarily want to retaliate
• But if it is necessary, we have a strong plan to do so and we will use it
• Will assess US announcements carefully to give calibrated response
• All instruments are on the table for countermeasures
• We have the power to push back against US tariffs

At this stage, I reckon markets can still somewhat take Trump’s tariffs in stride; though still dependent on how hard he is going to lay the hammer down tomorrow of course. But in a case where other countries and regions respond strongly with retaliatory measures, especially Europe and China, that’s something that will potentially be a major drag for risk sentiment.

This article was written by Justin Low at www.forexlive.com.