The European Union has moved ahead with the first phase of its retaliatory tariffs against the United States, marking a critical point in an escalating trade standoff that is sending tremors through global markets.
The European Commission announced Wednesday that the bloc will begin collecting duties from April 15 in response to Washington’s 25% tariffs on EU steel and aluminum exports. The duties range between 10% and 25% and affect $25 billion worth of U.S. goods.
While the EU has not yet released a final list of affected goods, a draft seen last month suggests the tariffs will hit a wide swath of American exports—ranging from poultry and grains to metals and clothing. A second phase of retaliatory duties is expected to follow on May 15.
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The EU’s executive arm called the U.S. tariffs “unjustified and damaging,” noting they are harmful not only to both sides but to the global economy as a whole.
“The EU has stated its clear preference to find negotiated outcomes with the U.S., which would be balanced and mutually beneficial,” the Commission said.
But the EU’s preference for diplomacy may not be enough to stave off further escalation from Washington, especially as tensions between the U.S. and China have already shown how far President Donald Trump is willing to go in this latest round of economic warfare.
Trump’s Pattern of Retaliation Raises EU Concerns
So far, it remains unclear how the Trump administration will respond to the EU’s move. The White House has yet to issue an official statement following Wednesday’s announcement. However, last month, Trump warned that any country imposing retaliatory tariffs on the U.S. would face more severe duties in response.
During a rally in Pennsylvania and later on his social media platform, Trump threatened a 200% tariff on European alcohol imports if the EU went ahead with retaliatory measures. While that specific threat hasn’t materialized—yet—officials in Brussels are bracing for a possible follow-through, especially in light of the President’s swift action against China earlier this week.
On Monday, Trump lashed out at Beijing for raising tariffs on U.S. imports from 34% to 84%, calling China’s action a “direct affront” to prior warnings.
“China issued Retaliatory Tariffs of 34%, on top of their already record setting Tariffs, Non-Monetary Tariffs, Illegal Subsidization of companies, and massive long-term Currency Manipulation,” he said.
Trump made clear that such retaliation would not go unanswered: “If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” he said.
He has since stayed true to that threat. On Tuesday, the U.S. confirmed that it had raised the total tariff burden on Chinese imports to 104%, making it one of the most aggressive tariff regimes in modern trade history.
This development has left EU officials on edge. The fear is that Europe may now be in line for similar treatment, particularly as its own retaliatory duties take effect.
“We are prepared to respond,” said European Commission President Ursula von der Leyen earlier this month, emphasizing that the EU was still open to dialogue. “It’s not too late to address concerns through negotiations.” But her appeal for calm may not hold much sway in Washington.
€380 Billion in Exports Hit, More at Stake
According to the European Commission, the U.S. tariffs have impacted €380 billion ($420.45 billion) worth of the bloc’s exports—roughly 70% of Europe’s total exports to the U.S. Trade Commissioner Maros Sefcovic warned that the new U.S. duties would bring the total value of duties on European goods to €80 billion, a drastic increase from the €7 billion collected just a few years ago.
The full scope of the economic damage remains unclear, but industries across Europe are already bracing for higher costs, disrupted supply chains, and declining competitiveness in the U.S. market.
Adding to the uncertainty is the possibility that Washington may unleash targeted tariffs on specific European industries as retaliation. With past grievances, including disputes over aircraft subsidies, digital services taxes, and agricultural standards—still unresolved, there is no shortage of friction points that could serve as a pretext for further escalation.
Global Markets Rattled
The unfolding trade fight between the U.S., the EU, and China has already triggered a spike in market volatility. Investors are increasingly skittish, fearing that a prolonged tariff war will dampen global growth, drive up consumer prices, and destabilize already fragile supply chains.
Analysts say that without a shift in tone from either Washington or Brussels, the risk of a full-scale transatlantic trade war is now greater than at any point in the last decade.
For the EU, the immediate focus is to protect its economic interests while avoiding a tit-for-tat spiral. For the Trump administration, however, the approach remains rooted in brinkmanship, using tariffs as leverage to extract concessions and shift trade balances by force. Whether that strategy succeeds or backfires may soon hinge on how Washington responds to the EU’s opening salvo.