EU Prepares United Response to US Tariffs Amid Escalating Trade Tensions

The European Union is gearing up to present a united front against US President Donald Trump’s sweeping tariffs, with plans to approve targeted countermeasures on up to US$28 billion worth of US imports. This move aligns the EU with China and Canada in imposing retaliatory tariffs, raising fears of a global trade war that could drive up consumer prices and push economies into recession.
The 27-nation bloc faces 25 percent import tariffs on steel, aluminum, and cars, as well as reciprocal tariffs of 20 percent on nearly all other goods starting April 9. These tariffs impact approximately 70 percent of the EU’s exports to the US, valued at €532 billion in 2024, with additional duties on copper, pharmaceuticals, semiconductors, and timber expected.
The European Commission, responsible for coordinating EU trade policy, is set to propose a list of US products for extra duties, including meat, cereals, wine, wood, clothing, and everyday items like chewing gum and dental floss. Bourbon has emerged as a contentious product, with the Commission earmarking a 50 percent tariff, prompting Mr. Trump to threaten a 200 percent counter-tariff on EU alcoholic drinks.
France and Italy, major wine exporters, have expressed concerns over the potential impact. The EU, heavily reliant on free trade, aims to secure broad support for its response to pressure Mr. Trump into negotiations.
On April 7, Luxembourg will host the first EU-wide political meeting since the tariff announcement, where trade ministers from member states will discuss the impact and formulate a strategy. EU diplomats emphasize the importance of a unified message advocating for negotiations while preparing countermeasures if talks fail.
Opinions among EU members vary on the approach. France has proposed a comprehensive package beyond tariffs, while Ireland calls for a measured response. Italy has questioned the necessity of retaliatory measures altogether. EU trade chief Maros Sefcovic described recent talks with US counterparts as “frank,” highlighting the damaging and unjustified nature of the tariffs.
The initial counter-tariffs will be voted on April 9 and are expected to pass unless opposed by a qualified majority. If approved, they will be implemented in two stages, starting April 15 and continuing a month later.
Commission President Ursula von der Leyen will hold discussions with industry leaders to assess the impact and determine next steps. As tensions rise, the EU remains committed to protecting its interests while seeking a resolution to avoid further escalation.