The European Union announced that it will begin collecting retaliatory duties on select imports from the US next week, as EU trade ministers expressed a preference for negotiations to eliminate tariffs imposed by President Donald Trump instead of engaging in retaliation.
The 27-nation bloc is currently facing a 25% import tariff on steel, aluminum, and cars, along with “reciprocal” tariffs of 20% on nearly all other goods as part of Mr. Trump’s strategy to target countries he claims maintain high barriers against US imports.
Ministers responsible for trade convened in Luxembourg to discuss the EU’s response and relations with China. Many emphasized that launching negotiations should be the priority to avoid escalating into a full-blown trade war.
“We must remain calm and respond in ways that reduce tension. The stock markets illustrate the potential consequences of an immediate escalation. Nevertheless, we are ready to implement countermeasures if necessary to bring the Americans to the negotiation table,” said Dutch Trade Minister Reinette Klever during a press briefing.
“Ultimately, we will come to the negotiation table with the US and find a compromise that works for both sides,” EU Trade Commissioner Maroš Šefčovič stated at a news conference.
He also noted that the EU plans to initiate the collection of a first wave of targeted retaliatory duties on US imports starting from April 15, followed by a second wave on May 15, in response to US tariffs on European steel and aluminum.
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EU prepared to retaliate if necessary
He further clarified that, while the EU prefers to negotiate the removal of tariffs with the US, it is prepared to escalate its response. This could involve the EU’s Anti-Coercion Instrument (ACI), which would enable it to target US services or restrict access to EU public procurement tenders for US companies.
“We are ready to deploy any tool necessary to protect the single market,” he echoed sentiments from French Trade Minister Laurent Saint-Martin.
However, some EU nations, particularly those heavily reliant on trade with the United States, advised a cautious approach.
Tánaiste Simon Harris characterized the ACI as “very much the nuclear option,” and expressed skepticism that most EU countries are prepared to engage with it at this time.
Maroš Šefčovič reiterated that the EU would start enforcing the first wave of targeted retaliatory duties on US imports from April 15 and a second wave from May 15 (file image).
Outgoing German Economy Minister Robert Habeck asserted that the EU must understand that it holds a strong position, particularly if unified.
“The stock markets are already declining, and further damage could occur… America is in a position of vulnerability,” he stated in Luxembourg.
Mr. Habeck added that the hopes expressed by Trump’s associate Elon Musk for zero tariffs between Europe and the United States support this notion.
This week, the EU is likely to approve initial countermeasures against approximately $28 billion (€25.5 billion) worth of US imports, ranging from dental floss to diamonds, in response to Mr. Trump’s steel and aluminum tariffs, rather than the broader reciprocal levies.
However, even this step has not been without complications, as Mr. Trump has threatened a 200% counter-tariff on EU alcoholic beverages if the bloc follows through with a proposed 50% duty on US bourbon. France and Italy, significant exporters of wine and spirits, have raised concerns.
The 27-nation bloc is anticipated to unveil a larger set of countermeasures by the end of April, addressing US car and “reciprocal” tariffs.
Nonetheless, in a tariff dispute over goods, Brussels finds itself with fewer targets than Washington, given that US imports into the EU totaled €334 billion ($366.2 billion) in 2024, compared to €532 billion in EU exports.
