The European Union has approved sweeping retaliatory tariffs on 21 billion euros ($23 billion) worth of US exports, striking back at Donald Trump’s escalating trade war with duties targeting American agriculture, manufacturing, and politically sensitive Republican strongholds.
In its first direct response to the Trump administration’s steep steel and aluminium tariffs, the EU will begin levying 25 per cent duties on a wide range of goods from 15 April. A second wave will follow on 15 May, with a third tranche scheduled for 1 December.
Confirming the vote, which came on the day that Trump’s “reciprocal” tariffs on the EU and dozens of countries took effect, the European Commission called the US tariffs “unjustified and damaging, causing economic harm to both sides, as well as the global economy,” adding that the countermeasures can be suspended at any time if the US agrees to a fair and balanced negotiated outcome.
Hungary was the only member state to oppose the move, with Prime Minister Viktor Orbán’s government warning that retaliation would further damage the European economy and calling instead for negotiations.
“Such measures would cause further damage to [the] European economy and citizens by raising prices. The only way forward is negotiations, not retaliation,” Hungary’s foreign minister, Péter Szijjártó, wrote on social media.
The EU’s tariff list has been designed to inflict political and economic pain on Republican-leaning US states. Items like soya beans from Louisiana, beef from Kansas and Nebraska, and wood products from Georgia and the Carolinas have all been targeted. Although bourbon was initially considered, it was dropped following lobbying from France, Italy, and Ireland, who feared reciprocal measures against their wine and spirits industries, Politico reported.
The EU announcement follows China’s imposition of 84 per cent tariffs on US goods, a move triggered by Trump’s latest round of duties on Chinese imports, which reached a cumulative total of 104 per cent. With over 70 per cent of EU exports to the US now affected by Trump’s tariffs tensions across the Atlantic are mounting.
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The European Commission said a second phase of retaliatory measures would be unveiled early next week in response to the US administration’s sweeping “reciprocal tariffs” and the threat of duties on European cars.
While some within the EU are pushing for a more aggressive response—possibly targeting US tech giants or financial services—Commission officials remain cautious. Henna Virkkunen, the Commission’s lead on tech regulation, confirmed that further actions were being prepared, though she stressed that Brussels still favoured negotiation over escalation.
Earlier this week, Commission President Ursula von der Leyen revealed that the EU had offered the US a “zero-for-zero” trade deal to eliminate tariffs on cars and industrial goods. The proposal was initially made in February but has gained renewed attention following Elon Musk’s public support for a no-tariff deal between the two blocs.
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