Trade war escalates: EU strikes back at Trump’s new tariffs

The EU is preparing countermeasures after Trump’s sweeping tariffs, set to impose a 10% minimum duty on imports and 20% on EU goods. European leaders warn of economic fallout as trade ministers plan next steps, with talks critical to avoiding a trade war.

The European Union is gearing up for retaliatory measures following U.S. President Donald Trump’s sweeping new tariffs, which impose a 10% minimum duty on most imports and a higher 20% rate on EU goods. European Commission President Ursula von der Leyen called the move a major blow to the global economy and confirmed that the EU is finalising a response.

A first package of tariffs on $28.4 billion worth of U.S. goods is set for mid-April, targeting the earlier U.S. steel and aluminium tariffs. Further measures are under consideration if negotiations fail, with EU trade ministers meeting in Luxembourg on Monday to discuss next steps.

The EU is exploring options beyond tariffs, including limiting U.S. firms’ access to public procurement and service markets. Experts warn that an escalating trade war could significantly impact EU exports, particularly in the automotive and technology sectors.

French President Emmanuel Macron is set to meet industry leaders to address the impact of the tariffs, while Italian Prime Minister Giorgia Meloni has called for diplomatic solutions. With global markets on edge, the coming weeks will be critical in determining the outcome of this transatlantic trade standoff.

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