The European Commission is assembling a fresh round of counter-tariffs aimed at US goods, adding to two existing lists of potential targets—one of which includes products that were hit by suspended tariffs in 2018
The European Union is gearing up to retaliate against US President Donald Trump’s sweeping new tariffs, with European Commission President Ursula von der Leyen vowing to protect the bloc’s economic interests. The move comes after Trump imposed a 20% tariff on European goods, as part of a broader trade policy that targets 60 “worst offender” nations, Euro News reported.
Von der Leyen, speaking from Samarkand, Uzbekistan, where she was attending the first EU-Central Asia summit, called for the US to shift from confrontation to negotiation. However, she made it clear that the EU is not backing down. “We are already finalising a first package of countermeasures in response to tariffs on steel,” she said. “And we are now preparing for further countermeasures to protect our interests and businesses if negotiations fail.”
The EU’s Strategy: Retaliation and Readiness
The European Commission is assembling a fresh round of counter-tariffs aimed at US goods, adding to two existing lists of potential targets—one of which includes products that were hit by suspended tariffs in 2018. EU officials have hinted that, if necessary, these measures could extend beyond goods to services.
Von der Leyen also warned of the indirect consequences of Trump’s new tariffs, particularly the risk of market dumping—where surplus global production floods European markets at lower prices.
“We will also be watching closely what indirect effects these tariffs could have, because we cannot absorb global overcapacity nor will we accept dumping on our market,” she added.
Europe Reacts: Calls for Unity, Avoiding a Trade War
The EU, which recorded a €156.6 billion goods trade surplus with the US in 2023, has sought to strike a balance between firm retaliation and avoiding a full-scale trade war. Leaders from several European nations, including Sweden and Ireland, have called for a measured response.
Swedish Prime Minister Ulf Kristersson acknowledged the potential harm of escalating trade tensions.
“We don’t want growing trade barriers. We don’t want a trade war. That would make our populations poorer and the world more dangerous in the long run,” Kristersson said. However, he assured that Sweden was well-prepared, noting that the country’s “world-class public finances” would help mitigate the impact.
Similarly, Ireland’s Deputy Prime Minister (Tanaiste) Simon Harris called for calm. “The EU and Ireland stand ready to find a negotiated solution with the US,” Harris said. “Together with my government colleagues, my officials, and the EU, we will be reviewing the situation and the best way to respond in the coming hours and days.”
Trump’s Tariffs: A Blow to Global Trade
Trump’s latest tariff announcement includes a 10% baseline tax on all imports into the US, with special increases for certain regions. The European Union was singled out for a 20% levy, alongside steeper tariffs on automobiles manufactured outside the US (25%).
The move has sent shockwaves through global markets, with analysts warning of higher consumer prices, disrupted supply chains, and an escalating protectionist stance from Washington.
Trump defended his policy as an effort to restore fairness to global trade, accusing other nations of exploiting existing agreements.
“It’s our declaration of independence,” Trump said while unveiling a tariff chart in the White House Rose Garden. He claimed that the EU and other major economies had unfairly benefited from trade imbalances, justifying the need for reciprocal duties.
The Road Ahead: Negotiation or Retaliation?
Despite the tough rhetoric, von der Leyen signaled that the EU is open to dialogue, while maintaining a firm stance on economic self-defense.
“I agree with President Trump that others are taking advantage of the current rules,” she acknowledged. “And I am ready to support any efforts to make the global trading system fit for the realities of today’s economy.”
However, she warned that tariffs alone cannot resolve global trade imbalances.
“Reaching for tariffs as your first and last tool will not fix it,” she said, urging the US to embrace negotiation over confrontation.
With the new US tariffs set to take effect next Wednesday, European policymakers face a critical decision: whether to intensify retaliatory measures or seek a diplomatic resolution. The coming weeks will determine whether this latest trade dispute remains a controlled skirmish or escalates into a full-scale trade war.
