EU seeks unity in first strike back at Trump tariffs

Countries in the European Union are expected to come together in the next few days to oppose U.S. President Donald Trump’s tariffs, likely endorsing an initial set of specific countermeasures on nearly $28 billion worth of U.S. imports ranging from dental floss to diamonds.

This action would imply the EU aligning with China and Canada to impose retaliatory tariffs on the United States, marking an early escalation of a potential global trade war that could increase prices for billions of consumers and push economies worldwide into recession.

The 27-member alliance encounters 25% tariffs on imported steel, aluminium, and vehicles, as well as “reciprocal” tariffs of 20% starting Wednesday for nearly all other products.

Trump’s tariffs impact roughly 70% of the EU’s exports to the U.S., valued at 532 billion euros ($585 billion) last year, with potential duties on copper, pharmaceuticals, semiconductors, and timber yet to be implemented.

The European Commission, responsible for coordinating EU trade policy, will present to members on Monday evening a list of U.S. items to impose additional duties in retaliation to Trump’s tariffs on steel and aluminum instead of implementing broader reciprocal tariffs.

It is expected to encompass U.S. meat, grains, wine, lumber, and apparel, alongside chewing gum, dental floss, vacuum cleaners, and toilet tissue. A product that has garnered increased attention and revealed tensions within the bloc is bourbon. The Commission has set a 50% tariff, leading Trump to warn of a 200% retaliatory tariff on EU alcoholic beverages if the bloc proceeds.

Both France and Italy, wine exporters, have voiced their worries. The EU, which heavily depends on free trade for its economy, is eager to ensure it has broad support for any reaction to maintain pressure on Trump to eventually start negotiations.

Luxembourg will host, on Monday, the initial EU-wide political gathering following Trump’s announcement of extensive tariffs, where trade ministers from the 27 EU nations will discuss the effects and optimal responses.

EU diplomats stated that the primary goal of the gathering was to present a unified stance expressing a wish to negotiate with Washington regarding the elimination of tariffs, while also being prepared to implement countermeasures if those negotiations were unsuccessful.