European Commission President Ursula von der Leyen said Tuesday that the European Union is ready for all possible outcomes after U.S. President Donald Trump threatened to sharply increase tariffs on European cars and trucks.

Speaking in Yerevan, von der Leyen rejected claims from Washington that the EU had failed to honor a previously agreed trade deal, insisting that both sides remain bound by the terms of the agreement.

“A deal is a deal, and we have a deal,” she said, emphasizing that the EU continues to implement its commitments while respecting its internal democratic processes.

Tensions escalated after Trump announced on Friday that the United States could raise tariffs on EU-made vehicles from 15% to 25%, accusing the bloc of not fully complying with last year’s agreement. The potential increase has raised concerns about a renewed transatlantic trade dispute that could impact key industries on both sides.

Under the existing EU-U.S. trade framework, tariffs were capped at 15% on most European goods, including automobiles. While the European Parliament has given conditional approval to the agreement, final implementation still requires coordination with member states.

Von der Leyen stressed that the EU is in the final stages of fulfilling its remaining tariff obligations and expects the United States to do the same.

“At the same time, the U.S. has commitments where alignment with the agreed ceiling is still outstanding,” she noted, signaling that Brussels expects reciprocal compliance.

Despite the tensions, the European Commission maintains that it remains committed to the agreement and aims for a mutually beneficial outcome based on cooperation and reliability.

Efforts to ease tensions are ongoing. EU Trade Commissioner Maroš Šefčovič is expected to meet U.S. Trade Representative Jamieson Greer on the sidelines of a G7 ministerial meeting in Paris.

Greer has criticized the EU’s approval process as slow, suggesting that proposed amendments could limit the scope of the agreement. Nevertheless, EU officials insist that negotiations are progressing and that both sides stand to benefit from maintaining the deal.

With the threat of higher tariffs looming, both sides appear to be preparing for a range of outcomes, from continued cooperation to potential escalation. The dispute underscores the fragility of transatlantic trade relations and the importance of sustained dialogue to prevent further economic friction. (ILKHA)