EU Prepares $28B Tariff Response to Trump’s Trade Moves

The European Union is preparing to impose retaliatory tariffs on up to $28 billion worth of U.S. imports, including items like meat, wine, wood, clothing, dental floss, and diamonds. This response targets U.S. President Donald Trump’s sweeping tariffs on EU steel, aluminum, and other goods, which cover around 70% of EU exports to the U.S., valued at €532 billion ($585 billion) in 2024.

The move aligns the EU with China and Canada in countering what many fear could spiral into a global trade war, increasing consumer costs and risking a worldwide economic slowdown. The proposed EU tariffs aim to pressure the U.S. into negotiations, rather than trigger further escalation.

The European Commission will present a final countermeasure list late Monday, ahead of a Wednesday vote by member states. Unless blocked by a qualified majority—15 of 27 countries representing 65% of the population—the tariffs will roll out in two stages starting April 15.

Among the most controversial items is a proposed 50% tariff on bourbon, which has prompted Trump to threaten a 200% retaliatory duty on EU alcoholic beverages. Wine-exporting nations like France and Italy have voiced concerns over potential fallout.

While countries like Ireland and Italy favor a cautious approach, France advocates for stronger measures, including halting EU investments in the U.S. until trade relations stabilize. The goal is to maintain EU unity and strengthen the bloc’s negotiating position with Washington.

Trade ministers from the 27 EU nations will meet in Luxembourg to align strategies and send a unified message of willingness to negotiate, but readiness to retaliate. Commission President Ursula von der Leyen is also consulting with industry leaders this week to assess economic impact and adjust the EU’s strategy.