President Trump’s recent declaration of a 20 percent tariff on European Union imports has shaken the 27-nation bloc, marking a significant escalation in an ongoing trade conflict, and souring relations among once-close allies. This Saturday, the EU is set to make its first retaliatory move—a move that may herald more to come.
EU officials, having spent the last several weeks perfecting a list of such retaliatory tariffs, will present their recommendations to member states’ foreign and trade ministers in Luxembourg on Monday, and are slated to vote on the list on Wednesday. Spearheading this effort are responde tariffs aimed at the steel and aluminum levies that Washington had previously announced. The preliminary list encompasses a wide range of products, including spirits, motorcycles, boats, and soybeans. Yet these will serve as merely the opening salvo in Europe’s pushback against Mr. Trump’s series of tariffs.
Beyond their initial reprisal, European officials are strategizing on how to address the car tariffs that were declared in late March, and the comprehensive 20 percent tariffs announced last week. They are responding in phases due to two primary reasons: the need to thoroughly understand the White House’s announcements, and efforts to design a retaliation strategy that will discomfort the United States while minimizing harm to EU consumers and companies.
Furthermore, by gradually rolling out their response, the EU aims to encourage the Trump administration to join the negotiation table. Their ultimate goal is to forge a deal that avoids a full-blown trade war. “The EU is committed to meaningful negotiations, but also prepared to defend our interests,” stated Maros Sefcovic, the EU Trade Commissioner, on social media post a “frank” two-hour meeting with his American counterparts.
The trade conflict is reaching a critical juncture, as the European Union ranks as one of America’s most crucial trading partners, and the United States is the top export market for European goods. Pushed to retaliate against American tariffs, European companies and consumers could face price hikes on the impacted goods.
In shaping their response, European officials have taken into account the diverse economic priorities and varying stances towards retaliation against the US. The possibility of escalating trade hostilities and their potential effects has spurred caution, with countries such as Italy hesitant to provoke enhanced retaliation in areas like alcohol. Italy’s Prime Minister, Giorgia Meloni, has even chastised the idea of an “artificial” choice between the US and the EU.
Though there is an overall reluctance on the EU’s part to institute tariffs, the bloc had previously attempted to forestall a trade conflict through means such as increased purchases of US natural gas. However, these efforts were unsuccessful, leaving European policymakers scrambling to devise a strategy considering Washington’s unexpectedly assertive approach.
In the event of a worsened trade conflict, European leaders may consider targeting American service exports, especially large technology companies. However, the real objective remains securing a mutually advantageous deal. Tech tycoon Elon Musk has indicated that he hopes for Europe and the US to achieve a free-trade zone without tariffs.
Finance leaders from the EU have shown openness to reducing tariffs in certain sectors if the US is open to dialogue. While there is a willingness to negotiate, any resolution would likely take considerable time as Treasury Secretary Scott Bessent has emphasized that such matters cannot be resolved swiftly.
Source: https://www.nytimes.com/2025/04/07/world/europe/europe-tariffs-trump-response.html
