The European Union has warned it is prepared to strike back with a “strong plan” if the U.S. moves forward with sweeping tariff hikes, as President Donald Trump prepares to announce a radical trade policy overhaul on April 2 — a date he has dubbed “Liberation Day” for American industries. Ursula von der Leyen, president of the European Commission, declared Tuesday that while the EU seeks to avoid escalation, it will not hesitate to retaliate against U.S. measures targeting steel, aluminum, cars, and other imports.

“Europe has not started this confrontation. We do not necessarily want to retaliate, but if it is necessary, we have a strong plan to retaliate and we will use it,” von der Leyen said in a speech, emphasizing the bloc’s readiness to deploy countermeasures. The EU previously imposed tariffs on €26 billion ($28 billion) worth of U.S. goods, including bourbon, motorcycles, and boats, in response to earlier steel and aluminum levies. Von der Leyen also hinted at leveraging the EU’s regulatory power, noting its history of fining major U.S. tech firms, a practice Trump has criticized as “overseas extortion.”

Trump’s upcoming announcement, teased by White House press secretary Karoline Leavitt on Monday, is expected to outline reciprocal tariffs designed to match trading partners’ duties “dollar for dollar.” The president has singled out allies like South Korea, accusing it of imposing tariffs “four times higher” than U.S. rates despite receiving military support. “We will approach these negotiations from a position of strength,” von der Leyen said, highlighting the $1.5 trillion annual trade volume between the U.S. and EU and the 1 million American jobs tied to transatlantic commerce.

The escalating standoff has drawn global pushback. China, Japan, and South Korea agreed during weekend talks to coordinate retaliatory measures, according to Chinese state media. China has already imposed 15% tariffs on U.S. agricultural products like wheat and cotton, responding to Trump’s 20% duties on its exports. Canada also warned of retaliation, with Prime Minister Mark Carney stating Friday that tariffs on U.S. goods would be enacted if Trump proceeds. Despite tensions, Carney described a call with Trump as “extremely productive,” signaling a tonal shift from prior U.S.-Canada friction under former Prime Minister Justin Trudeau.

The EU remains the largest buyer of U.S. goods, importing pharmaceuticals, cars, and telecommunications equipment, while America is the top destination for European exports. Von der Leyen stressed the interdependence of the economies but reiterated that “all instruments are on the table” to protect European interests. As Trump’s deadline looms, the world braces for a trade war with no clear off-ramp.