European Union countries have approved a set of retaliatory tariffs on U.S. imports, set to take effect next week, in response to tariffs imposed by President Donald Trump on steel and aluminum imports last month. This is the EU’s first major move in what could be an escalating trade dispute between the two global powers.
What Products Will Be Affected?
The initial tariffs range between 10% and 25%, and target specific U.S.-made products, including:
- Jeans
- Motorcycles
However, U.S.-made whiskey and alcoholic beverages were removed from the final list, which had appeared in earlier drafts.
More Tariffs Coming in 2025
The EU isn’t stopping there. Officials confirmed additional counter-tariff waves will roll out later in the year:
- Mid-May: Products like beef, poultry, and citrus fruits (e.g., oranges, grapefruits) will be hit.
- Early December: Tariffs will extend to nuts and soybeans.
The goal is to gradually respond to the broader scope of U.S. tariffs, especially those now covering cars and nearly all other EU exports.
What Prompted This Action?
The EU’s decision follows the Trump administration’s move to impose tariffs on steel and aluminum imported from Europe and other countries. According to EU estimates, these U.S. tariffs impact about €26 billion (or $28.8 billion) in European exports.
In response, the EU’s new tariffs will affect around €21 billion worth of American goods.
The EU Still Wants Dialogue
Despite approving these tariffs, EU officials continue to push for a diplomatic solution. The European Commission has emphasized that negotiation—not escalation—is the preferred path forward.
Still, the EU is also preparing a larger package of potential tariffs, especially in response to the latest U.S. tariffs on European cars and broader exports.
Trump’s Tariff Strategy
President Trump has used tariffs as a tool to:
- Address trade imbalances
- Encourage domestic production
- Offset tax cuts promised during his campaign
While these measures have drawn support from some U.S. industries, they’ve sparked retaliatory action from major trade partners like the EU, China, and Canada.