The European Union (EU) is preparing to respond forcefully to the escalating trade conflict initiated by U.S. President Donald Trump, who announced new tariffs set to take effect on April 2—a date he referred to as “Liberation Day,” El Pais reported. Trump’s proposed “reciprocal tariffs” could apply to all goods entering the United States, risking an unprecedented escalation in the commercial dispute between the world’s two largest economic blocs.
The European Commission, which oversees trade policy for the EU’s 27 member states, has signaled its readiness to retaliate with a wide range of measures. According to high-ranking EU sources, there are “no red lines” when it comes to potential countermeasures. The EU plans to impose additional tariffs on American products, building on existing levies introduced in response to U.S. duties of 25% on aluminum and steel.
However, Brussels is also considering more comprehensive tools, including the recently introduced “anti-coercion instrument,” which allows the EU to restrict access to its market for certain U.S. goods and services, ban American companies from participating in public procurement projects, and limit involvement in EU-funded initiatives.
Unity Under Pressure: Internal Divides and Delayed Tariffs
Trade relations between the EU and the U.S. are among the most significant globally, with bilateral trade reaching $975 billion (€900 billion) in 2024. Despite this, the EU faces challenges in balancing retaliation with internal cohesion. Countries like France, Italy, and Ireland fear potential retaliatory measures targeting their iconic exports, such as wine and whiskey, after Trump threatened tariffs of up to 200% on these products. To maintain unity, Brussels has delayed implementing some of its own tariffs while negotiating both with Washington and within the bloc.
The EU’s initial retaliatory measures, valued at approximately $26 billion, were scheduled to take effect this week and include taxes on quintessential American products like bourbon, Levi’s jeans, and Harley-Davidson motorcycles. However, fears persist that individual member states might pursue separate negotiations with the U.S., undermining collective action. As one senior EU official warned, “If Trump succeeds in breaking unity, the EU is lost.”
Amid growing tensions, the European Commission has reiterated its commitment to defending the bloc’s economic interests. A spokesperson stated that the EU would respond firmly and proportionally to any unfair or counterproductive U.S. measures.
Diplomacy at a Crossroads: Talks Stall as U.S. Moves Forward
While diplomatic efforts continue, recent talks in Washington between EU Trade Commissioner Maros Sefcovic and U.S. officials yielded limited progress despite appearing promising initially. Shortly afterward, the U.S. confirmed new tariffs of 25% on imported cars and auto parts, further complicating hopes for de-escalation.
In response, the EU is accelerating preparations for broader retaliatory actions. On April 7, EU trade ministers will convene in Luxembourg to finalize their strategy. With U.S. tariffs looming, the EU must make critical decisions about how far it is willing to go in countering Trump’s trade policies, even if it means adopting radical measures against its longstanding ally.
