LATEST: EU welcomes Trump’s 90-day pause in tariffs, as stock markets soar.
The European Union took its first steps on Wednesday to retaliate against President Donald Trump’s wave of tariffs, imposing duties on over €20 billion worth of American goods such as soybeans, motorcycles and beauty products.
These tariffs, which can go as high as 25%, are in response to the United States’ decision last month to implement duties on steel and aluminum imports. ALSO READ: EU hits back against US tariffs with ‘countermeaures’.
The EU’s reaction to Trump’s most recent round of tariffs is still pending. ALSO READ: EU hits out at Trump’s tariffs, yet keeps door open for ‘last-minute negotiations’.
‘These countermeasures can be suspended at any time, should the US agree to a fair and balanced negotiated outcome,’ the European Commission stated following the formal approval of the measures by EU member nations.
According to the Commission, the tariffs will start being collected on 15 April.
‘The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy,’ the statement continued.
The EU stressed its desire to reach an agreement that would be ‘balanced and mutually beneficial’.
In addition to previous tariffs, Trump has introduced a 25% duty on European car imports and imposed 20% ‘reciprocal tariffs’ on a variety of EU goods, effective from Wednesday, similar to measures enacted on numerous other countries.
An EU spokesperson indicated that the bloc could announce its reaction to those additional tariffs as early as next week.
The list of affected products, approved by 26 of the 27 EU nations (with Hungary dissenting), was notably skewed toward goods from US states that tend to vote for Trump’s Republicans.
Among the items targeted are poultry, soybeans, rice, corn, fruit and nuts, plastics, motorcycles, electrical equipment, textiles, wood products and beauty items.
Although bourbon had originally been considered for the list, it was ultimately excluded following lobbying by France and Italy, two of the EU’s largest wine producers. They reportedly feared retaliatory measures from Trump, who had threatened to slap a 200% tariff on European alcoholic beverages.
The EU has aimed to respond to the US tariffs with a strategy that mixes carefully measured retaliation with a willingness to negotiate, in hopes of avoiding a full-scale trade conflict.
This initial EU response comes amid escalating tariff tensions between Washington and Beijing. US Treasury Secretary Scott Bessent has said that countries opting not to retaliate would be spared from even higher duties.
The measures announced on Wednesday include two key components.
First, a set of previously suspended levies dating back to Trump’s first term will be reinstated, taking effect next Tuesday.
Second, the EU introduced a new list of goods subject to tariffs, with most set to be enforced starting next month and others following in December.
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