PULSE POINTS:
What Happened: On Wednesday, before President Donald J. Trump announced he would be reducing tariffs on countries that have not “retaliated in any way, shape, or form against the United States,” the European Union (EU) approved an estimated $21 billion in retaliatory tariffs against a number of American exports.
Who’s Involved: The European Union, the European Commission, and U.S. President Donald J. Trump.
Where & When: Brussels, Belgium on Wednesday, April 9.
Key Quote: “The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the U.S., which would be balanced and mutually beneficial,” the European Commission said in a statement.
Impact: The EU retaliatory trade measures were to be imposed in three phases from April 15, impacting a number of American goods, including soybeans, motorcycles, orange juice, meat, tobacco, steel, and aluminum. Their fate is unclear now that President Trump has announced he will drop reciprocal tariffs—but not tariffs specific to certain tariffs, such as steel—to 10 percent for everyone but China for 90 days while trade negotiations are conducted.
IN FULL:
The European Union (EU) has cleared the way to impose an estimated $21 billion in retaliatory tariffs on American goods in response to steel and aluminum tariffs enacted by U.S. President Donald J. Trump last month. The European Commission—the EU’s unelected, quasi-executive body—announced the decision on Wednesday, noting that 26 of its 27 member states approved the trade measures. Viktor Orbán’s Hungary was the only EU country to oppose the tariff package.
“The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the U.S., which would be balanced and mutually beneficial,” The European Commission said in a statement.
The EU tariffs on U.S. goods are to be enacted in three phases, the first of which will take effect next week. Additional tariff measures will be imposed in May, and the final phase will be imposed in December. As of the time of publication, this timeline does not appear to have been changed as a result of President Trump’s pause.
The EU’s retaliatory measure consisted mainly of a 25 percent trade duty on American goods such as soybeans, motorcycles, orange juice, meat, tobacco, steel, and aluminum. However, the list of products hit with the trade levy could grow, if the EU moves forward with retaliatory measures next week in response to President Trump’s 25 percent tariff on European automobiles and the now paused 20 percent reciprocal tariff on all EU goods. It is unclear, now that Trump has paused the reciprocal tariffs, whether the Europeans will move forward with additional retaliatory measures.
Following the EU’s approval of the retaliatory measures, President Trump announced he would reduce U.S. reciprocal tariffs on countries that have not imposed any new import duties on America to a universal 10 percent tariff for 90 days, while they negotiate bilateral trade agreements with the White House. China was the one named exception by Trump, and will instead face a 125 percent tariff for imposing retaliatory levies on the U.S.
Notably, sector-specific U.S. tariffs on products, including steel, aluminum, and automobiles, appear unaffected by this pause.
Today, EU countries backed our proposal to impose trade countermeasures on the United States, in response to unjustified steel and aluminium tariffs.
Duties will apply from 15 April.
They can be lifted at any time, should a fair and balanced negotiated solution be found.
— European Commission (@EU_Commission) April 9, 2025
Image: European Union 2017 – European Parliament.
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