European Commission President Ursula von der Leyen stated on Thursday that the European Union is prepared to escalate its trade dispute with the United States by targeting the services and technology sectors. The comments come amid ongoing tensions over US-imposed tariffs, which von der Leyen described as a critical inflection point in global trade dynamics.

In an interview with the Financial Times, von der Leyen emphasized that the EU is developing retaliatory measures that could mark the first use of its newly established anticoercion tool. This mechanism allows the bloc to respond to perceived economic threats by targeting sectors such as services exports. “We are developing retaliatory measures,” she said. “There’s a wide range of countermeasures in case the negotiations are not satisfactory.”

Von der Leyen warned that failure to reach a deal with US President Donald Trump’s administration would result in expanded conflict, impacting key American industries. While she did not detail specific sectors or companies that could be affected, the message was clear: the EU is ready to act if provoked.

The European Commission President also reflected on the broader implications of the ongoing trade tensions. “US tariffs constitute an inflection point in global trade,” she said. “Today we see the cost of chaos... the costs of the uncertainty that we are experiencing today will be heavy.”

The EU has previously responded to US tariffs with targeted measures on goods, but this latest development suggests a strategic shift toward high-value service and technology exports. This marks a potential escalation in transatlantic trade relations, which have been strained by recent protectionist moves.

While both sides continue discussions, von der Leyen’s comments underscore the urgency of reaching a diplomatic solution. The prospect of extended trade barriers between the two major economic powers raises concerns among industry leaders and policymakers about long-term economic fallout and instability.

As negotiations proceed, observers will be closely monitoring how the US responds to the EU’s warnings, and whether any mutual concessions can be reached to avoid further disruption in international trade.