Luxembourg, April 7 – European Union ministers have agreed to prioritize negotiations with the United States to remove tariffs imposed by President Donald Trump, even as the bloc prepares targeted countermeasures. The 27-nation EU faces steep import tariffs of 25% on steel, aluminum, and cars, alongside reciprocal tariffs of 20% on most other goods starting April 9.
During a trade meeting in Luxembourg, ministers emphasized the need to de-escalate tensions and avoid a trade war. Dutch Trade Minister Reinette Klever stated, “We need to remain calm and respond in a way that de-escalates. But we will be prepared to take countermeasures if needed to get the Americans at the table.”
Negotiations with Washington have proven challenging. EU Trade Commissioner Maros Sefcovic described recent talks with US counterparts as “frank,” highlighting the damaging impact of the tariffs. The EU is expected to approve an initial set of countermeasures targeting up to $28 billion worth of US imports, including items like dental floss and diamonds. However, President Trump has threatened retaliatory tariffs of up to 200% on EU alcoholic beverages if the bloc proceeds with its plans.
France and Italy, major exporters of wine and spirits, have expressed concerns over the potential fallout. Meanwhile, the EU is preparing a larger package of countermeasures by the end of April, aimed at addressing US car tariffs and reciprocal levies. French Trade Minister Laurent Saint-Martin has called for the use of the EU’s Anti-Coercion Instrument (ACI) to target US services and limit American companies’ access to EU public procurement tenders.
Despite the push for countermeasures, some ministers have urged caution. Irish Foreign Minister Simon Harris described the ACI as “very much the nuclear option” and advocated for restraint. German Economy Minister Robert Habeck stressed the importance of EU unity, noting that America’s economic position is weakening amid collapsing stock markets.
As tensions rise, the EU faces the challenge of balancing retaliation with negotiation to protect its economic interests and avoid further escalation.
