The European Union has signaled its readiness to respond firmly to the latest 25% tariff on car imports imposed by President Trump’s administration. European Commission spokesperson Olof Gill declared on Thursday that the EU is prepared to defend its economic interests through a response that is 'firm, proportionate, robust and well-calibrated.'

Gill emphasized that the EU’s preferred course is to pursue a negotiated solution that could reinforce economic and trade ties between the two powers. However, he strongly criticized the U.S. tariff decision, describing it as a move that 'goes in completely the wrong direction' and amounts to an 'act of economic self-harm.'

In light of the escalating tension, Gill warned that any retaliatory measures taken by the EU would be crafted to ensure maximum impact on the United States while minimizing collateral effects within the European Union. His remarks suggest that although diplomacy remains the priority, the EU will not hesitate to defend itself against what it sees as unfair and counterproductive trade actions.

The unfolding developments point to a growing rift between the U.S. and EU trade policies, as President Trump, now in his re-elected term, continues to pursue protectionist strategies. The EU’s firm stance sets the stage for potential retaliatory measures that could have significant ramifications for transatlantic trade relations.