How will the EU respond to the US tariffs?
The European Union is ready to negotiate with the United States to reach an agreement on tariffs, while preparing measures to protect its interests.
Daniela Budu, 08.04.2025, 14:00
The European Union says it prefers to negotiate with the United States to avoid a trade war, while considering a first set of countermeasures to the US customs duties. With respect to the general 20% tariffs on European products announced by president Donald Trump last week and which will be applied from 9th April, the European Commission would like to continue talks with Washington and proposed a free-trade agreement based on zero-for-zero tariffs.
“We stand ready to negotiate with the US. Indeed, we have offered zero-for-zero tariffs for industrial goods as we have successfully done with many other trading partners. Because Europe is always ready for a good deal”, said European Commission president Ursula von der Leyen, but adding “we are also prepared to respond through countermeasures and defend our interests”. Donald Trump said on Monday that the proposal made by the European Union on the a full and mutual exemption from customs duties on industrial products, including cars, is not sufficient for lifting the American customs duties. He said the US’ trade deficit to Europe will “disappear fast” because he says European countries will have to buy energy from the US.
Ursula von der Leyen emphasised that the Union will protect itself from the indirect effects of the tariffs through trade diversion and will set up and Import Surveillance Task Force to this effect. The latter will look at the historical imports of the bloc and establish whether there is a sudden surge of a certain product or in a certain sector and whether measures need to be taken. The Commission president believes the first to be affected by the tariffs will be consumers and businesses in the United States, but that the global economy will also suffer, in particular developing countries. She went on to say that beyond preparing retaliatory measures and standing ready for dialogue with the United States, the European Union will continue to work to diversify and consolidate its trade relations. “So we will focus like a laser beam on the 83% of global trade that is beyond the US”, von der Leyen said.
The European Commission on Monday proposed 25% tariffs on a series of American products in response to Washington’s 25% tariffs on steel and aluminum products. The initial list of products also included bourbon, wine and diary products, but they were eliminated as Donald Trump threatened to respond with 20% tariffs on imports of European alcohol. Europe’s tariffs are to apply from 16th May, and in the case of some products from 1st December.
