The European Union on Wednesday approved retaliatory tariffs on American goods after the Trump’s administration’s new taxes kicked in earlier in the day – escalating a trade war with Washington.
The 27- member bloc’s new levies will hit more than $23 billion of US products like soybeans, motorcycles, meat, iron, steel, textiles, tobacco and even ice cream.
The tariffs, which will be phased in over the coming weeks, come in response to the 25% duty on steel and aluminum duties imposed by the US last month.
An additional 20% reciprocal tariff on everything from French wine to Italian leather went into effect Wednesday as part of Trump’s “Liberation Day” plan against global trade partners.
European leaders have cautiously navigated their reaction to Washington’s aggressive trade stance, choosing measured retaliation in hopes of avoiding a spiraling trade conflict.
However, EU representatives have expressed concern that the Trump administration seems determined to fundamentally alter global trade practices while showing limited interest in compromise.
“The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy,” the EU Commission said in a statement.
“The EU has stated its clear preference to find negotiated outcomes with the US, which would be balanced and mutually beneficial.”
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But with negotiations not progressing, the EU approved its tariff list during a committee vote.
Hungary was the only one of the 27 members who voted against the package, according to four EU diplomats with direct knowledge of the vote, according to Politico.EU.
The revised list is noticeably scaled down from the original proposal, which had initially targeted approximately $28 billion worth of American goods.
Notably absent from the revised list is American bourbon, previously considered a symbolic and significant item for tariffs.
Its exclusion followed Trump’s warning of potential counter-tariffs reaching 200% on European alcoholic beverages, a threat particularly alarming to prominent wine producers in France and Italy.
Trump has consistently argued that the EU must reduce its trade surplus with the US, suggesting Europe should significantly boost imports of American natural gas or ease its automotive safety standards — demands widely viewed in Europe as impractical or unrealistic.
The unfolding transatlantic trade tension represents a critical moment for EU-US relations — as Europe carefully seeks to balance its economic interests with diplomatic prudence.
Analysts note that Europe’s phased and cautious approach signals a desire for resolution through dialogue rather than escalation, despite increasingly strained communications with the Trump administration.
In 2024, the total trade in goods between the US and EU reached approximately $975.9 billion.
US exports to the EU amounted to $370.2 billion, showing a modest increase of 0.7% from the previous year. At the same time, imports from the EU to the U.S. rose by 5.1%, totaling $605.8 billion.
The trade deficit of $235.6 billion rose 12.9% , compared to 2023.
Beyond goods, the trade in services also plays a major role.
In 2023, the US enjoyed a services trade surplus with the EU valued at around $114 billion.
The EU boasted a nominal GDP of nearly $20 trillion in 2024 — or roughly one-sixth of global economic output.
