EU seeks unity in first strike back at Trump tariffs

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April 7, 2025

5 min read

Reuters

In response to U.S. President Donald Trump's tariffs, European Union nations will likely approve a first batch of targeted countermeasures on up to $28 billion worth of U.S. imports, ranging from diamonds to dental floss, in an effort to show unity in the coming days.

12 In a move that some worry may develop into a worldwide trade war, the EU would join China and Canada in putting retaliatory tariffs on the United States, driving global economies into recession and raising the cost of goods for billions of people.

Beginning Wednesday, the 27-nation bloc will be subject to 25% import taxes on steel, aluminum, and automobiles, as well as 20% "reciprocal" duties on nearly all other items. About 70% of the EU's exports to the US, which totaled 532 billion euros ($585 billion) last year, are subject to Trump's tariffs; penalties on copper, pharmaceuticals, semiconductors, and lumber are probably still to come. In response to Trump's steel and aluminum tariffs, the European Commission, which oversees EU trade policy, will suggest to members late Monday a list of American goods that would be subject to additional charges instead of the more general reciprocal levies.

Beginning Wednesday, the 27-nation bloc will be subject to 25% import taxes on steel, aluminum, and automobiles, as well as 20% "reciprocal" duties on nearly all other items. About 70% of the EU's exports to the US, which totaled 532 billion euros ($585 billion) last year, are subject to Trump's tariffs; penalties on copper, pharmaceuticals, semiconductors, and lumber are probably still to come. In response to Trump's steel and aluminum tariffs, the European Commission, which oversees EU trade policy, will suggest to members late Monday a list of American goods that would be subject to additional charges instead of the more general reciprocal levies. In addition to chewing gum, dental floss, vacuum cleaners, and toilet paper, it is expected to contain American meat, cereals, wine, wood, and apparel.

Bourbon is one product that has drawn increasing attention and revealed division within the bloc. Trump has threatened to impose a 200% counter-tariff on EU alcoholic beverages if the bloc moves forward with the 50% duty that the Commission has set aside.

Italy and France, two countries that export wine, have voiced their concerns. In order to maintain pressure on Trump to eventually engage in negotiations, the EU, whose economy is largely dependent on free trade, is eager to ensure that any response has broad support.

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