EU Vows Immediate Retaliation Against Trump’s New U.S. Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The European Union has vowed to retaliate against President Donald Trump’s new tariffs on steel and aluminum, warning that the U.S. trade policy is heading in the wrong direction. The European Commission, which oversees the EU’s trade policy, said it will take firm and immediate action to protect European businesses and workers. While specific countermeasures have not yet been announced, past EU responses to U.S. tariffs included duties on American motorcycles, bourbon, and jeans. With U.S.-EU trade totaling $1.5 trillion annually, the potential for an escalating trade dispute looms large.
EU’s Response to U.S. Tariffs: Quick Look
- Immediate Action Pledged: The European Commission vows retaliation against Trump’s tariffs.
- Economic Impact: U.S.-EU trade is worth $1.5 trillion annually.
- Key Goods Affected: Trump’s tariffs target steel and aluminum; EU countermeasures could hit American whiskey, motorcycles, and peanut butter.
- Inflation Warning: EU warns that tariffs will increase costs for U.S. consumers and businesses.
- Retaliation History: The EU previously imposed tariffs on U.S. goods after similar Trump policies in his first term.
EU Vows Immediate Retaliation Against Trump’s New U.S. Tariffs
Deep Look: EU Pushes Back Against Trump’s Tariffs
The European Union wasted no time responding to President Donald Trump’s new reciprocal tariff plan, calling it an unjustified move that could damage global trade.
“The EU will take firm and immediate action against unjustified barriers to free and fair trade,” the European Commission said in a statement.
The U.S.-EU economic relationship is one of the world’s largest, but Trump’s latest tariff decision could reignite tensions similar to his first term’s trade war on steel and aluminum.
EU’s Argument: Tariffs Hurt the U.S. Economy
“Tariffs are taxes. By imposing tariffs, the U.S. is taxing its own citizens, raising costs for businesses, stifling growth, and fueling inflation.”
Why Trump Imposed New Tariffs
Trump’s reciprocal tariff plan aims to match the import tax rates other countries impose on U.S. goods. He has criticized the EU for its trade surplus and says his goal is to level the playing field.
However, the EU argues that it already has some of the lowest tariffs globally, meaning Trump’s actions are unnecessary and purely political.
How the EU Could Retaliate
The EU has not yet detailed its countermeasures, but past retaliatory actions suggest it could target iconic American goods:
- Bourbon whiskey – A major export from the U.S.
- Motorcycles – Harley-Davidson was hit hard by previous tariffs.
- Peanut butter & jeans – Symbolic and high-profile U.S. products.
The EU previously raised tariffs on these goods in response to Trump’s 2018 steel and aluminum tariffs, which angered European leaders and businesses.
The Economic Stakes: U.S.-EU Trade in Numbers
The economic impact of a trade war could be massive, as the U.S. and EU account for 30% of global trade.
Total U.S.-EU Trade in 2023:
- Goods trade: $878 billion (EU trade surplus: $161 billion)
- Services trade: $710 billion (EU trade deficit: $107 billion)
While the EU exports more goods to the U.S., the U.S. dominates in services, including finance, technology, and consulting.
What Happens Next?
- EU Announces Countermeasures – Expected in the coming weeks.
- Possible Trade Negotiations – Trump has hinted at renegotiating EU-U.S. trade deals.
- Business & Consumer Impact – Tariffs could raise prices on both sides.
With Trump’s tariffs shaking global markets, the EU’s response could determine whether a full-scale trade war erupts—or if a compromise is reached.
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