Fri Apr 11 08:20:00 UTC 2025: ## EU Prepares Retaliatory Tariffs Against US in Escalating Trade War

**Brussels/Washington D.C.** – The European Union is gearing up for a trade war with the United States after President Trump announced new, retaliatory tariffs on EU goods, impacting key sectors like automobiles, machinery, pharmaceuticals, and chemicals. The EU’s response, announced on July 7th, includes a proposed 25% tariff on select US products, set to come into effect in April and May.

The move follows the US’s imposition of tariffs on steel, aluminum, and automobiles, which the EU deems unfair and a violation of multilateral trade rules. The EU accuses the US administration of employing a “simple and brutal” method for calculating the “equalizing tariffs,” resulting in a 20% levy on EU exports.

European Commission President Ursula von der Leyen stated the EU is establishing an import monitoring task force and strengthening its single market to counter the US tariffs. While expressing openness to negotiations, she emphasized the EU’s readiness to implement countermeasures if talks fail. This sentiment was echoed by EU Trade Commissioner Valdis Dombrovskis, who noted that despite EU efforts, engagement with the US has yielded no positive results.

The announcement sent global markets into a tailspin, with European stock markets experiencing sharp declines. Despite this, President Trump dismissed the EU’s offer to mutually lift tariffs as “totally insufficient,” reiterating his accusations of European trade “cheating.” He specifically criticized the EU’s lack of US goods purchases and highlighted energy sales as key to reducing the US trade deficit.

Experts point out that while the EU enjoys a trade surplus with the US in goods, this is offset by a deficit in services. The overall trade imbalance is far less significant than frequently claimed by President Trump, who repeatedly accuses the EU of exploiting the US, claims experts dismiss as unsubstantiated.

EU member states, particularly France and Germany, have expressed their determination to respond forcefully. German Vice-Chancellor Robert Habeck called the US tariff calculations “absurd,” while French Minister Laurent Saint-Martin warned of a “very strong” EU counter-response, leaving no option off the table. This includes exploring measures beyond traditional trade tariffs, such as digital taxes on US tech giants and enhanced banking regulations. The EU is also reportedly considering restricting US participation in EU public procurement projects.

Analysts believe the EU holds significant leverage in trade, technology, infrastructure, finance, and people-to-people relations. However, achieving a unified front against the US remains a key challenge, with differing member state relationships and priorities hindering collective decision-making. The EU’s success in countering US pressure hinges on its ability to consolidate its assets and present a united front.

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