EU Responds to U.S. Tariffs: A Gradual and Targeted Response

On April 9, 2025, the European Union unveiled its first set of retaliatory measures in response to the tariffs imposed by Donald Trump, particularly the 25% duties on steel and aluminum. After several waves of additional U.S. tariffs, the EU has decided to impose tariffs on a range of American products. These measures, while firm, are designed to be proportionate and are being implemented gradually, leaving the door open for negotiations with Washington.

A Three-Step Response

The EU approved an initial list of tariffs targeting American goods worth a total of 22 billion euros. The 25% tariffs will apply to products such as soy, poultry, motorcycles, as well as a more diverse range of items like electrical equipment and cosmetics. Some goods, such as certain textiles, will be subject to a lower 10% tariff rate. The tariffs will be rolled out in stages: starting on April 15 for some food and cosmetic products, followed by a second round on May 16, and a final wave in December for items like almonds and soy.

Bourbon and European Cooperation

To minimize the risk of retaliatory measures against sensitive sectors, such as European wines and spirits, Brussels decided to spare American bourbon from its list, addressing concerns from countries like France and Italy. Despite this, the EU remains committed to defending its interests and limiting the economic impact of this trade war. Further measures are in preparation to address the new 20% U.S. tariffs on all other European goods, which were implemented on April 9.

Internal Tensions on the Approach to Take

The EU’s 27 member states remain divided on the intensity of the response to adopt. Some, like France and Germany, are considering using more radical tools, such as the “anti-coercion instrument,” which would allow blocking access to European public markets or freezing certain investments. This mechanism, while potentially deterrent, has not yet gained unanimous support among EU members. In any case, the European Commission hopes that a negotiated settlement can prevent further escalation while preparing additional measures to counter U.S. tariffs on the digital sector.