EU set to approve first retaliation against US tariffs, escalating trade tensions
On Wednesday, April 9, European Union countries are expected to approve the bloc’s first countermeasures in response to U.S. President Donald Trump’s tariffs, joining China and Canada in escalating a trade conflict that could turn into a global trade war.
This decision comes as Trump’s “reciprocal” tariffs on the EU and several other countries take effect, including a massive 104% duty on Chinese goods. This move extends Trump’s tariff policies and has led to widespread selling in financial markets.
The EU faces 25% import tariffs on steel, aluminum, and cars, as well as new tariffs of 20% on nearly all other goods under Trump’s policy, which targets countries that impose high barriers to U.S. imports.
On Monday, the European Commission, responsible for coordinating EU trade policy, proposed additional duties, mostly around 25%, on a variety of U.S. imports in retaliation to the U.S. metals tariffs. These imports include motorcycles, poultry, fruit, wood, clothing, and dental floss.
The total value of these goods was approximately 21 billion euros ($23 billion) last year, meaning the EU’s countermeasures will target products worth less than the 26 billion euros of EU metals exports affected by U.S. tariffs. The retaliation is set to roll out in stages—on April 15, May 16, and December 1.
A committee of trade experts from the EU’s 27 member countries will vote on the Commission’s proposal Wednesday afternoon. The proposal can only be blocked if a “qualified majority” of 15 EU members, representing 65% of the EU population, votes against it.
France and Italy, two major wine exporters, had expressed concern after Trump threatened to impose a 200% tariff on EU wines and spirits if the EU moved forward with a 50% duty on U.S. bourbon.
Meanwhile, Trump has already responded to China’s counter-tariffs, nearly doubling duties on Chinese imports. China has vowed to “fight to the end.”
