EU set to respond to US tariffs with 'coordinated measures'

In the face of tariffs imposed by US President Donald Trump, European Union member states are expected to present a unified response in the coming days, potentially endorsing an initial suite of retaliatory tariffs targeting up to $28 billion worth of American exports. The proposed measures span a diverse array of products — from dental floss to diamonds, as per a Reuters report.

Should these countermeasures be approved, the EU would join China and Canada in implementing retaliatory duties, marking an early phase in what analysts fear could escalate into a comprehensive global trade conflict. Such tensions risk inflating consumer prices and disrupting economies on a global scale, potentially triggering a recession that would affect billions worldwide.

The 27-member bloc is currently subject to 25 per cent import duties on steel, aluminium, and automobiles, with a further 20 per cent in reciprocal tariffs applicable from Wednesday, 9 April on nearly all remaining goods.

President Trump’s trade actions impact approximately 70 per cent of EU exports to the United States, a trade volume valued at €532 billion ($585 billion, where $1 = 0.9102 euros) in the previous year. Future tariff targets are anticipated to include copper, pharmaceuticals, semiconductors, and timber.

In response, the European Commission — the body responsible for formulating EU trade policy — will present a detailed list of American goods to be subject to additional tariffs. This list, expected to be shared with member states later today, will concentrate on products tied to the steel and aluminium duties rather than extend to the full array of reciprocal tariffs, according to Reuters.

The affected US exports include agricultural goods such as meat and cereals, as well as wine, wood products, textiles, chewing gum, dental floss, vacuum cleaners, and toilet paper.

One notable item that has sparked debate within the bloc is bourbon, for which the Commission has proposed a 50 per cent tariff. This has elicited a sharp reaction from President Trump, who has threatened to impose a 200 per cent tariff on European alcoholic beverages should the EU proceed with the measure.

France and Italy, both significant wine exporters, have voiced apprehensions about the repercussions of such actions. The EU, whose economic structure is closely tied to global trade, is eager to secure broad internal consensus before proceeding, thereby maximising pressure on Washington to return to the negotiating table.

On Monday, Luxembourg will convene the first EU-wide political assembly since President Trump unveiled the tariff strategy. Trade ministers from all 27 EU nations will gather to deliberate the potential economic consequences and outline a cohesive response strategy.

According to EU diplomatic sources, the primary objective of this meeting is to present a unified message: a willingness to engage in negotiations with the United States aimed at tariff removal, paired with a readiness to enact proportional retaliatory measures if talks fail.

"Our biggest fear after Brexit was bilateral deals and a break of unity, but through three or four years of negotiations that did not happen. Of course, here you have a different story, but everyone can see an interest in a common commercial policy," an unnamed EU diplomat commented.

Divergent Views on Retaliatory Strategy

Within the EU, perspectives differ regarding the appropriate course of action. France has advocated for a broader approach, extending beyond mere tariffs, and France's President Emmanuel Macron has suggested that European companies consider suspending investment in the US until greater clarity emerges.

In contrast, Ireland — whose economy relies heavily on exports to the US, which account for nearly one-third of its total — has recommended a “considered and measured” reaction. Meanwhile, Italy, the EU's third-largest exporter to the American market, has questioned whether retaliation is the correct path.

"It's a difficult balance. Measures cannot be too soft to bring the United States to the table, but not too tough to lead to escalation," another EU diplomat remarked.

Thus far, negotiations with Washington have yielded little progress. EU trade official Maros Sefcovic characterised his recent two-hour dialogue with US representatives as “frank”, emphasising that the US tariffs were “damaging” and “unjustified.”

The initial list of EU counter-tariffs is scheduled for a vote on Wednesday and is expected to pass unless an unlikely coalition of at least 15 member states representing 65 per cent of the EU population opposes it.

If approved, the tariffs would be implemented in two phases: the first taking effect on 15 April, with the remainder introduced one month thereafter.

Additionally, European Commission president Ursula von der Leyen is slated to hold separate consultations with industry leaders from the steel, automotive, and pharmaceutical sectors on Monday and Tuesday. These meetings aim to evaluate the impact of the US tariffs and determine the EU’s next steps.

With agency inputs