EU readies €400 billion response to US tariffs as trade tensions escalate

The European Union is preparing a robust retaliation to US tariffs, with potential duties on American goods reaching a staggering €400 billion.

This response follows a series of tariffs imposed by US President Donald Trump, including a 25 per cent levy on steel and aluminium, a 20 per cent tariff on most EU exports, and a 25 per cent tariff on European car and autoparts exports, Caliber.Az reports via foreign media.

The European Commission is expected to release a final list of US products targeted for retaliation in response to the steel and aluminium tariffs. The list will then be put to a vote by EU member states on April 9. However, it is understood that the Commission plans to first evaluate the economic impact of the initial tariffs before considering a further expansion of the list to address the car tariffs and the 20 per cent blanket duties on EU exports.

In Luxembourg, an emergency meeting of EU trade ministers will take place, with Tánaiste Simon Harris among those attending. The gathering comes as global markets prepare for a turbulent week following Trump's announcement of new trade measures. The global economic outlook has been clouded by fears of a potential downturn, with concerns also growing about the risk of a US recession.

EU ministers are expected to focus on two primary issues: immediate retaliation against the 25 per cent tariffs on European steel and aluminium, and the broader response to Trump’s 20 per cent tariffs on nearly all EU exports to the US. The European Commission has already circulated a 99-page list of US products, which could be targeted for retaliatory tariffs.

In particular, Ireland, France, and Italy have been lobbying for US bourbon to be removed from the list, as Trump had previously threatened to impose a 200 per cent tariff on European wine and spirits. Early indications suggest that these efforts may have been successful, though the Commission has kept the final list confidential ahead of the meeting. Member states are set to vote on the final package on April 9.

By Vafa Guliyeva