EU Retaliates with 25% Tariffs

On Wednesday, the European Union voted to approve its first set of retaliatory tariffs—25%— in response to US duties on steel and aluminum.

The European Commission announced that the first wave of these tariffs will take effect on 15 April, targeting US imports such as motorcycles, poultry, fruit, wood, clothing, and dental floss.

The countermeasures, which impact approximately $23 billion worth of US goods, will be rolled out in three phases: 15 April, 16 May, and 1 December.

The initial phase, covering €3.9 billion in trade, begins next week, followed by additional measures €13.5 billion from mid-May and a final round of €3.5 billion in December.

While the EU has yet to finalise the full list of affected products, the tariffs will target a broad range, including poultry, grains, clothing, and metals.

The EU had previously warned of such actions to safeguard European businesses and consumers following US President Donald Trump’s imposition of 25% tariffs on metals.

The European Commission said:

“The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the US, which would be balanced and mutually beneficial.”

Adding in the statement:

“These countermeasures can be suspended at any time, should the US agree to a fair and balanced negotiated outcome.”

Notably, the EU's response does not yet address broader tariffs on cars and other goods.

Only One out of 27 Countries in the EU Stood in Oppostion

Hungary was the sole opponent to the package, as confirmed by four EU diplomats with direct knowledge of the vote.

All other 26 member states supported the measure.

Hungary's Foreign and Trade Minister Péter Szijjártó said in a post on X (formerly known as Twitter):

“Escalation is not the answer. Such measures would cause further damage to European economy and citizens by raising prices. The only way forward is negotiations, not retaliation.”

After Trump announced the 90-day tariff pause, he affirmed that not supporting EU’s retaliation is correct.

For the retaliation to be blocked, 14 EU countries would have needed to vote against it—an outcome deemed highly unlikely given the recent displays of unity within the bloc.

EU Facing 20% Tariffs

The EU is currently facing 20% tariffs on nearly all its US imports, part of a broader trade action by Trump targeting over 180 countries and territories, as announced on 2 April.

In response, European Commission President Ursula von der Leyen stated that the EU is prepared to retaliate unless successful negotiations with the US administration occur.

"We are prepared to respond," she affirmed, adding that the EU was planning further countermeasures to safeguard its interests and businesses.

However, she also emphasized the importance of dialogue, asserting that it was "not too late to address concerns through negotiations."

Maros Sefcovic, the EU's commissioner for trade and economic security, noted that US tariffs were affecting €380 billion ($420.45 billion) worth of European exports, nearly 70% of the total exports to the US.

He added:

“To put it in perspective, that’s over 80 billion euros in duties, an eleven-fold jump from the 7 billion [euros] the U.S. currently collects.”

The EU has yet to respond to Trump's recent 25% tariff on cars or to upcoming US tariffs on pharmaceuticals, which Trump has indicated are forthcoming.

The EU is currently evaluating how to address these broader duties.

A vote among EU trade experts on Wednesday afternoon is expected to approve the European Commission's response plan, unless an unlikely majority rejection occurs.

The Commission has indicated that countermeasures could be proposed as soon as next week.

Trade spokesperson Olof Gill said Tuesday:

“It will for sure be soon. I expect it could be as early as next week.”