The European Commission has proposed phased tariffs of 25% on various American goods in response to the steel and aluminum tariffs imposed by the Trump administration. This move, reported by Reuters, aims to balance trade relations and protect European markets from what they view as unfair practices.
Starting from March 16, 2025, certain American imports will face restrictions, with additional products being affected from December 1, 2025. The list of goods that may be subject to these duties includes a wide range of items such as diamonds, eggs, sausages, poultry, dental floss, almonds, and soybeans.
EU member states are set to vote on this proposal on April 9, 2025. Notably, products like bourbon, wine, and dairy were excluded from the initial list, which had considered a hefty 50% tariff on bourbon. This exclusion comes after President Trump threatened to impose a 200% countervailing duty on European alcoholic beverages, raising concerns particularly in France and Italy.
Since March 12, 2025, the United States has enforced a 25% tariff on steel and aluminum imported from the European Union. The European Commission has responded by announcing plans to impose 'mirror' duties on American exports, potentially affecting trade worth up to 26 billion euros. Ursula von der Leyen, the head of the European Commission, emphasized the detrimental impact of U.S. tariffs, stating, "These tariffs violate supply chains. They introduce uncertainty into the economy. Jobs are at risk. Prices will rise. Both in Europe and the United States."
In a related development, on April 2, 2025, President Trump signed an order to implement reciprocal duties on goods from trading partners that he claims have created non-tariff barriers against American products. The tariffs imposed include 34% on China, 20% on the EU, and a base duty of 10% on all imports.
Following Trump's announcement of additional fees on imports from the EU, Brussels is preparing to introduce the first retaliatory duties on American goods on April 15, 2025. EU Trade Commissioner Maroš Šefčovič confirmed that these tariffs will target products such as American jeans, whiskey, peanut butter, motorcycles, and more.
A second list of retaliatory measures is expected to come into effect in mid-May 2025. The final list of goods subject to these duties will be agreed upon on April 9, 2025. This second round of tariffs will focus on agricultural products, including poultry, beef, seafood, nuts, eggs, dairy, sugar, and vegetables, as well as some industrial goods such as textiles, leather goods, household appliances, tools, plastics, and wood.
This package of retaliatory measures is still under development, with the EU hoping that the threat of such tariffs will encourage the U.S. to engage in trade negotiations. Trump's recent decisions have drawn sharp criticism from politicians and economists globally, and the financial markets reacted negatively, with significant drops in stock indices and falling oil prices.
The implications of Trump's trade policies are far-reaching, with expectations of rising consumer prices worldwide and a slowdown in economic growth. Trump's aggressive approach to trade has already led to retaliatory measures from other countries, including China, which has announced its own tariffs in response.
Historically, the EU has previously imposed special fees on American products during Trump's first presidency in retaliation for his tariffs on steel and aluminum. These measures were temporarily suspended during the administration of Joe Biden, Trump's successor, but have now resurfaced as tensions in international trade continue to escalate.
The current situation highlights the fragility of global trade relations and the potential for escalating tariffs to disrupt supply chains and economic stability. As the April 9 vote approaches, the EU's decision could significantly impact its relationship with the United States and the broader international trading landscape.
