European Commission President Ursula von der Leyen has waded into the thorny world of international trade wars with a mix of diplomacy, defiance, and just a hint of Lennon-esque inspiration. Her statements on the EU’s proposed 25 per cent tariffs on €21 billion of U.S. goods offered a masterclass in strategic ambiguity. On the one hand, she signalled a willingness to negotiate, yet on the other, she made it abundantly clear that Europe is not afraid to flex its economic muscle.

The backdrop to all of this is President Trump’s brash move to announce a 20 per cent blanket tariff on all EU imports to the United States. It was a classic Trump playbook manoeuvre. However, reality quickly intervened in the form of plummeting global stock markets and advisors whispering grave warnings of a potential recession. Under pressure, Trump backtracked somewhat. A 90-day suspension was put in place for the escalating tariffs, with the exception of a 10 per cent baseline rate that remains firmly on all foreign exports. Relief rippled through the affected nations — well, most of them anyway. China, distinctly singled out as the administration’s primary trade nemesis, now faces a jaw-dropping cumulative tariff rate of 145 per cent.

Meanwhile, von der Leyen was not about to play the part of a passive observer. With a subtle but firm message aimed across the Atlantic, she stated that the EU …