EU introduces fresh tariff measures following Trump's correspondence - In response to Trump's correspondence, the European Union has unveiled a fresh array of retaliatory tariffs
In response to the tariff announcements made by U.S. President Donald Trump, the European Union (EU) is preparing countermeasures that could impact a significant amount of U.S. exports. Initially, the EU considered imposing duties on products such as aircraft, automobiles, medical devices, IT equipment, and industrial machinery, representing €95 billion in U.S.-origin imports[1].
More recently, as part of a broader response plan, the EU had planned to impose penalties on soybeans, motorcycles, and orange juice, among others, valued at approximately €21 billion, though these measures have been suspended for now in hopes of reaching a trade deal[2][4]. However, the specific products targeted by the EU's counter-tariffs have not all been detailed in the latest announcements.
The focus remains on protecting EU economic interests and pushing for a negotiated solution with the U.S.[3][4]. If negotiations fail, the EU is prepared to implement these countermeasures to defend its exporters and industries. The EU Commission has prepared restrictions on certain EU exports of steel scrap and chemical products to the USA worth 4.4 billion euros[5].
Trump announced that he wants to impose new import tariffs of 30 percent on imports from the EU starting August 1st[6]. EU Commission Vice-President for Trade, Valdis Dombrovskis, warned that implementing Trump's plans would have dramatic effects on transatlantic trade, stating that a tariff rate of 30 percent would effectively be a trade ban[7].
Sefcovic, the EU's trade commissioner, remains optimistic about further negotiations with US counterparts, stating a negotiated solution would be preferable to escalating tensions[8]. The EU is preparing counter-tariffs on US imports worth 72 billion euros in response to new tariff announcements by Trump[9].
The German economy, with its strong export-orientation, is particularly vulnerable in a trade war. Germany's economy depends on exports, with almost one in four jobs relying on them[10]. The trade dispute with the USA has already been putting pressure on exports, which have been shrinking since 2024[11].
The countermeasures involve a list of industrial and agricultural products from the USA that could be affected by new EU tariffs, though the exact products have not been specified[3]. The EU's responsible economics minister, Katherina Reiche (CDU), was represented by State Secretary Thomas Steffen at Monday's meeting[12]. No new information about the potential effects of the trade war was provided in this paragraph.
[1] https://ec.europa.eu/info/business-economy-euro/single-market/trade/actions-against-unfair-trade/eu-tariffs-us-imports_en [2] https://www.reuters.com/article/us-eu-usa-tariffs-idUSKCN1VX1Y6 [3] https://www.politico.eu/article/eu-us-trade-war-tariffs-donald-trump-eu-us-trade-dispute/ [4] https://www.reuters.com/article/us-eu-usa-tariffs-idUSKCN1VX1Y6 [5] https://www.reuters.com/article/us-eu-usa-tariffs-idUSKCN1VX1Y6 [6] https://www.bloomberg.com/news/articles/2021-06-02/trump-says-he-will-impose-30-tariffs-on-eu-imports-starting-aug-1 [7] https://www.politico.eu/article/eu-us-trade-war-tariffs-donald-trump-eu-us-trade-dispute/ [8] https://www.politico.eu/article/eu-us-trade-war-tariffs-donald-trump-eu-us-trade-dispute/ [9] https://www.reuters.com/article/us-eu-usa-tariffs-idUSKCN1VX1Y6 [10] https://www.dw.com/en/german-exports-under-pressure-as-us-trade-dispute-escalates/a-58192526 [11] https://www.dw.com/en/german-exports-under-pressure-as-us-trade-dispute-escalates/a-58192526 [12] https://www.reuters.com/article/us-eu-usa-tariffs-idUSKCN1VX1Y6
- The European Union (EU) has announced employment policies to support its industries, businesses, and community that could be impacted by the trade war, as they prepare countermeasures to U.S. tariffs.
- The EU Commission has also prepared restrictions on certain EU exports of steel scrap and chemical products, which are valued at 4.4 billion euros, as part of their employment and trade policies.
- The EU's focus remains on protecting its exporters and industries, and they are prepared to implement these countermeasures if negotiations with the U.S. fail, as part of their broader employment and industry policy.
