EU Prefers Negotiation on US Tariffs, Yet Plans to Begin Collecting Duties Next Week
The European Union announced that it would begin imposing retaliatory duties on select imported US goods starting next week, following an agreement among EU trade ministers who expressed a preference for negotiations to lift the tariffs implemented by President Donald Trump rather than resorting to retaliation.
The 27-nation bloc is currently facing 25% import tariffs on steel and aluminum, as well as cars, alongside “reciprocal” tariffs of 20% on nearly all other goods due to Mr. Trump’s policy targeting countries he claims have high barriers to US imports.
Trade ministers convened in Luxembourg to discuss the EU’s strategy in response, along with matters concerning relations with China. Many emphasized that prioritizing negotiations was essential to prevent an outright trade war.
“We must remain calm and react in a manner that de-escalates tensions. The stock markets are showing the potential fallout of an immediate escalation. However, we are prepared to implement countermeasures if necessary to bring the Americans to the negotiating table,” stated Dutch Trade Minister Reinette Klever to reporters.
“Eventually, we will negotiate with the US and reach a mutually acceptable compromise,” EU Trade Commissioner Maroš Šefčovič remarked during a news conference.
He confirmed that the EU plans to commence the collection of the first wave of targeted retaliatory duties on US imports starting 15 April, with a subsequent round beginning on 15 May, in response to the US tariffs on European steel and aluminum.
Watch: Ursula von der Leyen highlights the ‘massive impact’ of Trump tariffs on the global economy
EU prepared to respond if necessary
Šefčovič also clarified that although the EU prefers to negotiate the tariff removals with the US, it stands ready to escalate its response if needed. This may involve utilizing the EU’s Anti-Coercion Instrument (ACI), which could enable targeting US services or restricting US companies’ access to public procurement opportunities in the EU.
“We are ready to utilize every tool available to safeguard the single market,” he emphasized, reflecting the sentiments of French Trade Minister Laurent Saint-Martin.
However, some EU nations, particularly those heavily reliant on trade with the United States, expressed caution.
Tánaiste Simon Harris characterized the ACI as “very much the nuclear option,” expressing his belief that most EU countries are not yet prepared to consider it, at least for the time being.
Maroš Šefčovič announced that retaliatory duties on US imports would begin with the first tranche on 15 April and a second one on 15 May (file image).
Outgoing German Economy Minister Robert Habeck highlighted that the EU should recognize its advantageous position—if it remains unified.
“The stock markets are already experiencing significant declines, and the situation could worsen… America finds itself in a position of weakness,” he stated in Luxembourg.
Habeck further remarked that Trump ally Elon Musk’s desire for zero tariffs between Europe and the United States underscored this position.
This week, the EU is anticipated to approve an initial set of countermeasures targeting up to $28 billion (€25.5 billion) worth of US imports, ranging from dental floss to diamonds, as a response to Mr. Trump’s steel and aluminum tariffs rather than the broader reciprocal tariffs.
However, even this step has proven complicated, as Mr. Trump has threatened a 200% counter-tariff on EU alcoholic beverages if the EU goes forward with a designated 50% duty on US bourbon. France and Italy, leading exporters of wine and spirits, have voiced concern.
The 27-nation bloc is expected to formulate a more extensive package of countermeasures by the end of April in response to US car and “reciprocal” tariffs.
Nevertheless, in a tariff battle on goods, Brussels has fewer targets than Washington, given that US goods imports into the EU totaled €334 billion ($366.2 billion) in 2024, compared to €532 billion in EU exports.
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