- EU ministers agreed on Monday to prioritize negotiations to remove Trump’s 25% tariffs on steel, aluminum, and cars, and 20% reciprocal tariffs on most goods starting Wednesday, while preparing $28 billion in initial countermeasures targeting U.S. imports like dental floss and diamonds, as reported by Reuters.
- European Commission President Ursula von der Leyen pushes for a “zero-for-zero” tariff deal, but talks with the U.S. remain tense, with Trump threatening a 200% tariff on EU alcoholic drinks if the bloc imposes a 50% duty on U.S. bourbon, raising concerns in France and Italy.
- The EU plans a larger countermeasure package by April’s end to address U.S. car and reciprocal tariffs, balancing de-escalation with readiness, as Dutch Trade Minister Reinette Klever warns of stock market risks if tensions escalate further.
European Union ministers are navigating a delicate balance in response to President Donald Trump’s aggressive tariff policies, with Reuters reporting a broad consensus reached on Monday to prioritize negotiations aimed at dismantling these trade barriers over immediate retaliation. The EU faces a formidable challenge: 25% U.S. import tariffs on steel, aluminum, and cars, alongside 20% “reciprocal” tariffs set to hit nearly all other goods starting Wednesday, a move Trump justifies as a counter to high barriers against U.S. imports. Amid this tension, Dutch Trade Minister Reinette Klever emphasized a measured approach, telling reporters that de-escalation is critical to avoid further destabilizing stock markets, though she affirmed the bloc’s readiness to deploy countermeasures if necessary to compel U.S. engagement.
The EU’s strategy, as articulated by European Commission President Ursula von der Leyen, hinges on securing a “zero-for-zero” tariff agreement for industrial goods, a proposal that reflects the bloc’s desire to reset trade relations with Washington. Yet, Reuters notes that talks have been arduous, with EU Trade Commissioner Maros Sefcovic describing his two-hour Friday discussion with U.S. counterparts as “frank,” underscoring that the current tariffs are “damaging, unjustified.” In Luxembourg, trade ministers convened to weigh this approach against the backdrop of strained U.S. ties and ongoing discussions about China, signaling a multifaceted diplomatic effort. The bloc is poised to roll out an initial $28 billion package of countermeasures this week, targeting U.S. imports like dental floss and diamonds, specifically in response to the steel and aluminum tariffs rather than the broader reciprocal levies.
This initial retaliation, however, is already meeting resistance. Trump has threatened a steep 200% counter-tariff on EU alcoholic drinks if the bloc proceeds with a planned 50% duty on U.S. bourbon, a move that has sparked concern among major exporters like France and Italy, whose wine and spirits industries stand to suffer. Reuters highlights that a more extensive countermeasure package, addressing the U.S. car tariffs and reciprocal duties, is slated for completion by April’s end, suggesting a phased escalation if negotiations falter. The EU’s position blends pragmatism with preparedness—seeking dialogue to avert a trade war while arming itself with targeted responses to protect its economic interests. With stock market volatility serving as a real-time barometer of these stakes, the bloc’s ability to coax the U.S. to the negotiating table without triggering a spiral of tit-for-tat measures will shape the transatlantic trade landscape in the months ahead.
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