The European Union is preparing new countermeasures after former US President Donald Trump announced a 20% tariff on European goods.
Ursula von der Leyen, President of the European Commission, confirmed on Thursday that the bloc is finalising a first package of trade responses and working on additional steps if negotiations with the US do not succeed.
This was reported by Euronews.
“We are already finalising a first package of countermeasures in response to tariffs on steel. And we are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail,” von der Leyen said during a visit to Samarkand, Uzbekistan, where she is attending the first EU–Central Asia summit.
She also stated that the EU will monitor indirect effects of the new US tariffs.
“We will also be watching closely what indirect effects these tariffs could have, because we cannot absorb global overcapacity nor will we accept dumping on our market,” she added.
Trump’s announcement on Wednesday includes a minimum 10% tariff on all countries, with the EU identified among 60 “worst offenders” and facing a tailored 20% rate. The measures are scheduled to take effect next Wednesday.
Additionally, a 25% tariff on automobiles manufactured outside the United States was imposed with immediate effect.
The EU recorded a surplus of goods with the US worth €156.6 billion in 2023, alongside a services trade deficit of €108.6 billion, according to available figures.
Member States Respond
Member states have begun reacting to the announcement. Sweden and Ireland issued statements expressing concern over the development.
“We don’t want growing trade barriers. We don’t want a trade war. That would make our populations poorer and the world more dangerous in the long run,” said Swedish Prime Minister Ulf Kristersson.
He added, “Sweden and the Swedish Government are well prepared for what’s happening now. We stand on solid economic ground, with world-class public finances.”
Ireland’s Tánaiste, Simon Harris, stated that “the EU and Ireland stand ready to find a negotiated solution with the US” and emphasized the need for a “calm and measured” response. “The EU will have to respond in a proportionate manner which protects our citizens, our workers and our businesses,” he said.
Brussels Considers Existing and New Measures
EU officials previously indicated that Brussels has two lists of US products that could face tariffs, including items that have been subject to suspended duties since 2018.
Services may also be considered for future measures, according to the same officials.
In her remarks on Thursday, von der Leyen said she shares the view that current trade rules may need revision.
“I agree with Trump that others are taking advantage of the current rules,” she said. “I am ready to support any efforts to make the global trading system fit for the realities of the global economy.”
However, she added: “Reaching for tariffs as your first and last tool will not fix it. Let’s move from confrontation to negotiation.”
Earlier this week, von der Leyen told the European Parliament that the EU “holds a lot of cards: from trade to technology to the size of our market” and would engage in talks “from a position of strength.”
