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EU Targets U.S. Goods With 25% Counter-Tariffs Amid Escalating Trade Dispute

BRUSSELS — The European Commission has unveiled a proposal to impose 25% tariffs on a broad list of U.S. exports in retaliation for steel and aluminum duties introduced under the administration of former U.S. President Donald Trump. The move, announced Monday, signals a renewed phase in the ongoing trade friction between Washington and Brussels.

According to the Commission, the first wave of EU counter-tariffs will take effect on May 16, with a second round to be enforced starting December 1. The punitive measures will target a diverse array of American goods, ranging from agricultural products like eggs, sausages, poultry, and almonds to less typical items such as dental floss and diamonds.

The Commission emphasized that this counteraction is aimed at achieving balance and fairness in transatlantic trade, especially in sectors where U.S. policies have created significant disadvantages for European producers.

Response to Trump-Era Metal Tariffs

The proposed European tariffs are a direct response to import duties of 25% on steel and 10% on aluminum that were enacted during Trump’s presidency. Those measures, justified on national security grounds, were met with widespread criticism from U.S. allies and triggered a flurry of retaliatory threats from the European Union.

Though the current counter-tariff package is narrower in scope than initially planned, it still represents a significant escalation. Earlier proposals had outlined tariffs potentially affecting up to €26 billion ($28.5 billion) in transatlantic trade. On Monday, EU Executive Vice President for Trade Maros Sefcovic clarified that the revised measures are designed to have a more targeted economic impact, reducing the likelihood of immediate disruption while preserving Europe’s strategic leverage.

“This is a calibrated and proportionate response that protects EU interests without escalating the situation unnecessarily,” Sefcovic said during a press briefing.

High-Profile Products on the List

The EU’s counter-tariff list spans numerous sectors, with both symbolic and economically significant products in its crosshairs. Among the most politically sensitive items is bourbon whiskey, which the Commission had considered subjecting to a 50% tariff. That proposal sparked a sharp warning from Trump, who threatened a 200% retaliatory tariff on European alcoholic beverages, particularly wine and spirits.

The threat rattled key EU wine-producing countries, notably France and Italy, whose export markets would be directly affected by such U.S. countermeasures. Despite these tensions, Brussels appears determined to hold its ground while leaving space for diplomatic engagement.

In an effort to deescalate, the EU chose to delay the implementation of some tariffs—most notably on almonds and soybeans—until December. Analysts say this staggered timeline allows both parties room to negotiate before additional duties take effect.

EU Reinforces Metal Industry Defenses

Alongside the retaliatory tariffs, the EU has already begun tightening its defensive trade mechanisms. On April 1, the bloc reinforced existing safeguard measures on steel imports, capping them to reduce volumes by an estimated 15%. The restrictions are designed to shield domestic producers from market distortions caused by surging imports, particularly from countries rerouting supplies due to U.S. trade barriers.

In a further move, the Commission is now evaluating a proposal to introduce import quotas on aluminum, a policy that will come to a vote by EU member states on April 9. If approved, the quotas would place additional constraints on foreign aluminum suppliers, offering further relief to European manufacturers struggling with global oversupply.

“The goal is to ensure that our industries remain competitive in the face of unjustified tariffs and growing global imbalances,” said a Commission spokesperson.

Diplomatic Ramifications

The announcement of new tariffs arrives at a sensitive moment in U.S.-EU relations. Although President Trump is no longer in office, his protectionist trade policies continue to influence global commerce. With Trump campaigning for a second term in the upcoming U.S. election, European officials are reportedly preparing for the possibility of renewed transatlantic trade hostilities.

“This is as much about future-proofing EU trade policy as it is about responding to the past,” said Pierre Leclerc, a trade analyst at the European Centre for International Policy. “The Commission is sending a message that it will not be passive in the face of unilateral action, regardless of who occupies the White House.”

While the Biden administration has adopted a more conciliatory tone in international trade, many of Trump’s tariffs remain in place. Efforts to unwind those measures have stalled amid domestic political considerations and pressure from U.S. industry stakeholders.

Business Community Reacts

The reaction from European businesses has been mixed. Industry associations representing sectors affected by potential U.S. retaliation—such as wine and spirits, aviation, and luxury goods—have voiced concern about becoming collateral damage in a broader geopolitical standoff.

“We understand the need for a proportionate response,” said Céline Bouchard of the European Federation of Wine Exporters. “But we urge both sides to prioritize negotiation over escalation. Trade wars have no winners.”

On the other hand, European steel and aluminum producers have welcomed the Commission’s firm stance, viewing it as necessary protection in an increasingly volatile global market.

Outlook for U.S.-EU Trade Relations

With both sides holding firm to their respective positions, the prospects for a swift resolution appear uncertain. However, EU officials have left the door open for dialogue, noting that the December implementation date for some tariffs offers a strategic window for negotiations.

Trade analysts suggest that future talks could center on mutual tariff reductions, stronger dispute-resolution mechanisms, and a shared approach to overcapacity in global steel and aluminum production—particularly from China.

Until then, the EU’s latest move underscores its commitment to defending the bloc’s economic interests with precision and resilience.

“This is not about confrontation,” Sefcovic said. “It is about restoring fairness in our trade relationship. We stand ready to talk—but we will not hesitate to act.”

 

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