Brussels: The European Union is set to begin lifting retaliatory tariffs imposed in response to US trade measures, starting next week. Simultaneously, EU trade ministers have agreed to advance negotiations with Washington in an effort to ease trade tensions and work toward a resolution. The decision was made during a meeting of EU trade ministers held in Luxembourg.
The United States currently imposes tariffs of 25% on European steel, aluminum, and automobiles, alongside a 20% duty on a range of other products. In response, the EU plans to roll out retaliatory duties on US imports valued at up to €25.5 billion, targeting products ranging from dental floss to diamonds.
EU Trade Commissioner Maroš Šefčovič confirmed that the first phase of retaliatory tariffs will come into effect on April 15, followed by a second phase on May 15, in direct response to the US-imposed steel and aluminum tariffs. He emphasised that negotiations with the US will proceed without delay and expressed optimism about reaching a mutually acceptable settlement.
Concerns Among Member States
Despite the unified front, some EU member states have expressed concern about potential US countermeasures. President Donald Trump has threatened a 200% tariff on EU alcohol exports if the EU proceeds with a proposed 50% tariff on bourbon. This has raised alarm in countries like France and Italy, which are major exporters of wine and spirits.
In addition, tariffs on US automobiles are being considered as part of the EU’s broader response. A comprehensive retaliatory package is expected by the end of April. However, analysts caution that such measures may not be sufficient to redress the trade imbalance or de-escalate tensions. In 2024, the EU imported €334 billion worth of goods from the US, while exporting €532 billion in return — a significant trade surplus that could be a key factor in the ongoing dispute.
Preference for Diplomacy
Despite these developments, the prevailing sentiment among EU trade ministers favours diplomacy over confrontation. Many ministers stressed the need to avoid a full-scale tariff war and to prioritise constructive dialogue.
Dutch Trade Minister Reinet Klever advocated for a negotiated solution, citing the potential economic fallout from escalating tariffs, including impacts on stock markets and investor confidence. However, she acknowledged that retaliatory measures remain on the table if the US refuses to engage.
European Commission President Ursula von der Leyen reiterated the EU’s willingness to negotiate a “zero-for-zero” tariff agreement on industrial goods. Several member states also urged a measured and cautious approach, underscoring the importance of maintaining stability in transatlantic trade relations.
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