EU vows it's ready to retaliate as Trump trade war looms

What they're saying: "We have everything we need to protect our people and our prosperity," Ursula von der Leyen told the European Parliament. "We have the strength to negotiate, we have the power to push back."

• "Of course, there are severe issues in the world of trade, without any question," she acknowledged, listing problems like market access and theft of intellectual property.
• But she called for a collaborative solution to the problem.
• "Tariffs are taxes that will be paid by the people. Tariffs are taxes for the Americans on their groceries and their medication. Tariffs will just fuel inflation, exactly the opposite of what we wanted to achieve."

What to watch: Wednesday is President Trump's much-touted "Liberation Day," when he is expected to announce sweeping tariffs that could potentially impact most U.S. imports.

• "We are open to negotiations. We will approach these negotiations from a position of strength. Europe holds a lot of cards," von der Leyen said.

• "This strength is also built on our readiness to take firm counter-measures if necessary. All instruments are on the table."

Flashback: Europe already put forward retaliatory tariffs last month after the U.S. imposed levies on steel and aluminum imports.

• A tariff on U.S. whiskey prompted Trump to threaten a 200% tariff on European wines, which the U.S. alcohol industry has warned would be destructive.

By the numbers: The U.S. imported more than $600 billion worth of goods from the EU last year, and exported more than $370 billion in goods there in return, per the U.S. Trade Representative.