EU Counters Trump Tariffs With Calm Yet Calculated Strike | Image Source: finance.yahoo.com
LUXEMBOURG, 7 April 2025 - Tensions between the EU and the US intensified this week as the EU announced its long-awaited response to the Trump administration’s aggressive tariff regime against steel, aluminum and cars. Although European officials did not release the total of 26 billion euros (28.46 billion dollars) in countermeasures originally envisaged, the message was indisputable: the bloc is ready to negotiate, but will not go back to defending its economic interests.
As Reuters pointed out and confirmed by other main outlets, EU Trade Commissioner Maros Sefcovic confirmed that the list of retaliatory tariffs, although important, would eventually be reduced after the Member States had given their opinion. Speaking with Luxembourg journalists, Sefcovic explained: “We are finalising the list tonight (…) but I can tell you that it will not be up to 26 billion euros, because we listened very carefully to our Member States”. According to the European Commission, new countermeasures will be introduced in two waves, starting on 15 April, and will continue with a second phase on 15 May.
This is an important turning point in transatlantic trade relations, especially since the EU is at the same time exceeding the possibility of a tariff-free agreement. The President of the European Commission, Ursula von der Leyen, proposed what she called a zero-to-zero approach – with a view to eliminating tariffs on major industrial products, including cars, if the United States agrees to do the same. However, staff members made it clear that reprisals would take place unless an agreement was reached in short order.
What explains the trade gap between the EU and the US?
The final dispute stems from the Trump administration’s decision to impose 25% import duties on imports of steel, aluminium and automobiles from the EU, a movement widely regarded as a protectionist move against European industry. These tariffs are part of a broader strategic approach that favours domestic manufacturing, often at the expense of long-standing professional associations. As the European Commission has indicated, US tariffs will affect hundreds of billions of people in transatlantic trade, which means both sides of the Atlantic.
“When you hit strategic sectors like steel and automobiles, you’re not just big products, you shake Europe’s industrial backbone,” said an EU diplomat, speaking anonymously. The EU, which exported about €53 billion (582 billion) of goods to the United States in 2024, compared with €334 billion in imports, is in a precarious situation. With more than losing in a trade war of all kinds, Brussels works carefully, but not without determination.
What products will be managed by Community tariffs?
The European Commission’s list of reprisals is broad and diverse, reflecting a strategy to inflict economic suffering and political pressure. According to the documents reviewed by Reuters, the selected products range from industrial products to consumer products. In particular, items such as diamonds, eggs, sausages, poultry, dental floss and even soy have been listed. According to EU officials, the counter-tariffs for almonds and soybeans will enter into force on 1 December, suggesting a gradual escalation if negotiations continue to fail.
Bourbon, wine and dairy were reportedly removed from the initial list after concerns about Trump’s threatened retaliation. The administration had identified a potential 200% duty on EU alcoholic beverages if the block imposed its proposed 50% duty on US bourbon. This led to the return of exporters of cellars such as France and Italy. By omitting these products, the EU seems to avoid an immediate tit-for@-@ tat while leaving room for scale if necessary.
Why does the EU reverse its original retaliation plan?
Internal unity was a critical consideration in the EU’s decision to reduce the €26 billion package. “We wanted to ensure that the burden was shared equally among all Member States,” Sefcovic explained. As Al Jazeera pointed out, Member States such as Ireland and the Netherlands expressed concern that a strong response could go back economically or politically.
Irish Chancellor Simon Harris called the EU Anti-Coertion Instrument (ACI), a mechanism that would allow Brussels to restrict US companies’ access to European public procurement, “very nuclear option”. Similarly, Dutch Trade Minister Reinette Klever defended moderation, warning that a rapid escalation could disrupt financial markets and further destabilize global supply chains. “We must remain calm and react in a disqualified manner,” said Mr Klever, stressing a sense shared by several Member States.
Is there still room for negotiation?
Yes, and EU leaders are on the matter. Ursula von der Leyen’s “zero for zero” proposal on industrial goods is not simply rhetorical; It reflects a genuine effort to reopen communication lines. According to the New York Times, von der Leyen made calls Monday with representatives of the metallurgical industry and was to become involved in the automotive sector shortly after. The idea is to build an internal consensus and to point out to Washington that the door remains open for diplomacy.
” Sooner or later, we will be at the negotiating table with the United States and find a mutually acceptable commitment,” Sefcovic said at the Monday press session. However, EU officials remain cautious. They know perfectly well that Trump’s administration has a history of sudden and drunken political changes. In this climate, preparing for escalation pending resolution became the mantra guide.
What will be the impact of this and consumer activity?
In the short term, companies engaged in transatlantic trade can face shocks, higher costs and uncertainties. For example, European car manufacturers such as BMW and Volkswagen could experience a reduction in US demand if tariffs remained in effect. US soybean, almond and poultry producers – key targets on the EU list – may also lose market access or run into lower profit margins.
Consumers are also not immune. Higher tariffs often lead to higher prices for imported goods. If this cycle continues, it could erode purchasing power and dampen consumer sentiment on both sides of the Atlantic. Moreover, global supply chains - already highlighted by post-pandemic instability and geopolitical changes - could be even more fragmented.
And then what?
EU Member States must vote on the tariff list on 9 April. If approved, the first wave of tariffs will come into effect on April 15, followed by a second on May 15. Additional obligations, such as almonds and soybeans, will be carried forward to December 1. In the meantime, the European Commission has already strengthened the safeguards on steel imports by 1 April, reducing quotas by 15%, and is considering limiting aluminium imports.
Despite this moderation, the EU’s readiness to invoke mechanisms such as the AIT should not be underestimated. Reflects a strategic calculation: avoid unnecessary damage now but be prepared to act hard if caused. According to Finance Yahoo News, the long-term objective of the bloc remains to direct this confrontation towards constructive negotiations, but not at the cost of a weak or divided vision.
The imminent question is whether Washington will engage meaningfully or further intensify. Europe boasting of possible retaliation measures, including Trump’s 200% price on wine and spirits, the coming weeks will be crucial. Companies, investors and policy makers around the world are watching closely, hoping that diplomacy will prevail over disruptions.
The next few months will test the resilience of economic ties between the EU and the US, and determine whether pragmatism can succeed on protectionism. If there is a withdrawal from this episode, it is that the EU - once rejected by some if slow and bureaucratic - can react with a calculated resolution when its interests are online.
