EU Hits Back, Imposes New Tariffs on $23 Billion In US Goods/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The European Union has approved retaliatory tariffs on $23 billion worth of U.S. goods in response to President Trump’s 25% tariffs on European steel and aluminum. The decision follows similar moves by China and Canada as global trade tensions reach new highs. European leaders insist they prefer a negotiated settlement but say the U.S. has left them no choice.
EU Tariffs Hit Back at U.S. Trade Moves: Quick Looks
- Tariff Trigger: Trump’s 25% duties on EU steel and aluminum
- EU Response: $23 billion in tariffs approved by member states
- Timeline: Duties begin in stages—April 15, May 15, and Dec. 1
- Scope Unknown: List of affected U.S. goods yet to be disclosed
- China’s Reaction: Tariffs on U.S. goods rise to 84%
- Canada’s Response: 25% tariff on U.S. autos that breach USMCA
- EU Statement: U.S. tariffs deemed “unjustified and damaging”
- Negotiation Window: EU open to talks, willing to suspend duties
- Global Recession Risks: JPMorgan CEO, economists raise alarm
- Markets Suffer: Stock losses, bond selloffs, oil prices plummet
EU Hits Back, Imposes New Tariffs on $23 Billion In US Goods
Deep Look
BRUSSELS/BEIJING/WASHINGTON — April 9, 2025 — The European Union escalated its response to the growing trade war with the United States on Wednesday, approving retaliatory tariffs on $23 billion worth of U.S. goods after President Donald Trump slapped a 25% duty on European steel and aluminum.
The move, which adds to an increasingly tangled web of global tariffs, marks the EU’s first formal countermeasure against the U.S. in this round of trade conflict. Tariffs will roll out in three stages—starting April 15, followed by May 15 and December 1—though the European Commission did not immediately release a list of the targeted products.
In a statement, the European Commission said it views the U.S. tariffs as “unjustified and damaging” and reiterated its preference for a negotiated resolution. It emphasized that these countermeasures could be paused if the U.S. agrees to a “fair and balanced” deal.
“This is not the path we prefer,” said EU Commission President Ursula von der Leyen, “but we must respond to safeguard European industry and economic interests.”
Global Fallout: China, Canada Also Fire Back
The EU’s announcement comes on the heels of China’s decision to raise tariffs on American goods from 34% to 84%, effective Thursday. The Chinese Ministry of Commerce said the U.S. actions were “deeply harmful to the global economy” and vowed to “fight to the end.”
Beijing also restricted operations for 18 U.S. companies, mainly in defense-related sectors, adding to a growing blacklist of American firms.
Meanwhile, Canada imposed its own 25% tariff on U.S. autos that fail to comply with the US-Mexico-Canada Agreement (USMCA), further isolating Washington amid Trump’s unilateral tariff push.
“The global trading order is unraveling,” said one European diplomat. “And it started with Washington.”
Economic Warning Bells
U.S. stock markets opened mixed Wednesday. The S&P 500, already battered from last week, has logged its worst decline since its inception in the 1950s. Oil prices hit four-year lows, and bond yields surged as investors fled traditional safe havens like U.S. Treasurys.
“This is no longer just a policy disagreement,” Dimon said. “It’s an economic crisis in the making.”
American Costs Could Soar
Economists estimate Trump’s tariffs could raise household costs by several thousand dollars annually. Recent poll found that three in four Americans expect prices to rise.
Some companies have already raised prices; others are waiting until existing inventory runs out. Pharmaceutical stocks took a hit after Trump reiterated plans for a new round of tariffs on imported medicines, on top of existing duties.
“Tariffs should be a scalpel, not a hammer,” said Michigan Governor Gretchen Whitmer, a Democrat and potential 2028 presidential contender.
Will Trump Negotiate?
Despite repeated calls for diplomacy, the Trump administration remains firm. Trump has called the tariffs “permanent,” even while touting their use as leverage for one-on-one negotiations.
On social media, he remained upbeat:
“BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!”
Trump has insisted the tariffs will help revitalize U.S. manufacturing and rebalance trade deficits, even as officials say China is not a priority for negotiations.
“The U.S. escalation is a mistake on top of a mistake,” China’s Finance Ministry said in a statement.
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