The European Union (E.U.) is preparing to issue retaliatory tariffs against U.S. imports after President Donald Trump announced sweeping tariffs on European nations and others across the globe.
The European Commission reportedly proposed 25 percent counter-tariffs on several U.S. goods, according to Reuters. The tariffs on some of the imports will take effect in May while others will apply in December.
E.U. officials have been considering a slew of countermeasures against Trump’s planned tariffs over the past few weeks, according to The New York Times.
This week, Europe will push ahead with its first countermaneuver — one of potentially several to come.
E.U. officials have spent the last several weeks refining a list of retaliatory tariffs that they plan to put into place on April 15.
Member states’ foreign and trade ministers were meeting to discuss U.S. and E.U. relationships in Luxembourg on Monday, with the list set to be circulated later in the day. A vote on the list is expected on Wednesday, E.U. officials said.
Those tariffs would come in response to steel and aluminum levies that Washington previously announced, and they are expected to be sweeping; the preliminary list covered everything from bourbon and motorcycles to boats and soybeans.
The edited version has dropped whiskey, one senior European official suggested on Monday, though a full set of items has not been published.
The wave of retaliatory tariffs would be just the start, an opening bid in Europe’s response to Mr. Trump’s tariff rollout.
EU COMMISSION PROPOSES COUNTER-TARIFFS ON RANGE OF US IMPORTS AT 25% IN RESPONSE TO US STEEL DUTIES, DOCUMENT SHOWS
— *Walter Bloomberg (@DeItaone) April 7, 2025
EU COMMISSION PROPOSES 25% TARIFF ON US GOODS TO TAKE EFFECT FROM MAY 16 -DOCUMENT
The plan appears to be issuing counter-tariffs in waves to better address the barrage of duties Trump is imposing while designing “a response that would inflict maximum pain on the United States while minimizing the fallout for European consumers and companies,” The New York Times explained.
They are also hoping that by phasing in their response, they will give the Trump administration time to come to the negotiating table. The ultimate goal is still to make a deal to avoid an all-out trade war.
The E.U. seems to be employing a carrot-and-stick approach to Trump. On Monday, it indicated it would be willing to negotiate a tariff-free trade agreement with the U.S., according to Al Jazeera.
Trade ministers met in Luxembourg on Monday to discuss the bloc’s response to US tariffs on steel and aluminium, with most agreeing that launching talks to avoid an all-out trade war should be the priority.
Following the meeting, EU Trade Commissioner Maros Sefcovic told reporters that the bloc’s countermeasures would be adjusted after considering member states’ feedback.
“When it comes to steel, aluminium and derivatives, we are talking about 26 billion euros [$28bn],” he said. “We are finalising the list tonight, but I can tell you that it will not be up to the level of 26 billion euros, because we’ve been listening very carefully to our member states,” said Sefcovic.
European Commission President Ursula von der Leyen indicated previously that the E.U. is ready to negotiate a “zero-for-zero” deal on industrial goods. However, it appears there might be an escalation in the trade war before the two parties come to the negotiation table.
Some European leaders have suggested invoking the Anti-Coercion Instrument (ACI), which would allow the E.U. to restrict American companies from accessing public contracts. However, Irish Foreign Minister Simon Harris stressed that this would be “very much the nuclear option.”
However, Washington maintains an advantage in this particular conflict. Europe imports about $334 billion euros worth of goods from the United States, which imports about $532 billion euros from the E.U., which gives the U.S. more wiggle room to impose further duties.
President Trump has not yet commented on this development, but on Monday he threatened to apply another 50 percent of tariffs on China if it goes through with its retaliatory 34 percent tariffs on U.S. products. He might take a similar tack with Europe as the trade wars continue.
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