EU Strikes Back: Initial Countermeasures Target $28 Billion in U.S. Imports

In a bold move that underscores escalating trade tensions, the European Union has agreed on its first set of countermeasures targeting approximately $28 billion worth of imports from the United States.

Announced on April 6, 2025, this decision marks a significant retaliation against recent U.S. tariffs, signaling that the EU is ready to defend its economic interests in what could become a broader transatlantic trade war.

The Backstory: A Tit-for-Tat Trade Spat

The roots of this development trace back to March 12, 2025, when the EU first outlined plans to impose duties on up to €26 billion ($28.3 billion) of American goods. This was a direct response to the Trump administration’s imposition of 25% tariffs on all steel and aluminum imports, which took effect earlier that month.

The U.S. policy, widely seen as a revival of protectionist “MAGAnomics,” ended prior exemptions and quotas, hitting EU exports hard and prompting swift condemnation from European leaders.

European Commission President Ursula von der Leyen called the U.S. tariffs “unjustified trade restrictions” and promised a “strong but proportionate” response.

Initially, the EU planned to reinstate suspended tariffs from 2018 and 2020 on April 1, alongside new measures by mid-April. However, after weeks of consultations with member states and stakeholders, the EU has now coalesced around this initial package, set to take effect soon after a vote scheduled for Wednesday. Reports suggest the measures need only 35% approval among EU nations to pass—a low bar indicating broad support.

What’s Targeted?

The EU’s countermeasures are strategically designed to match the economic scope of the U.S. tariffs, which the bloc estimates at $28 billion in affected trade. The list of targeted U.S. imports is diverse, spanning industrial and agricultural sectors to maximize political and economic impact. Expect duties on:

Agricultural Goods: Meat (like beef and poultry), cereals, nuts, and even sugar—staples that hit U.S. farmers where it hurts.

Beverages and Luxury Items: Bourbon whiskey, wine, and tobacco products, echoing past retaliatory moves against iconic American brands.

Consumer Goods: Clothing, jeans, home appliances, and quirky inclusions like dental floss and chewing gum.

Industrial Products: Steel and aluminum (a direct counterpunch), textiles, plastics, wood, and motorcycles—think Harley-Davidson, a perennial target in trade disputes.

High-Value Items: Diamonds and other luxury exports, aimed at upscale markets.

This broad approach mirrors earlier EU tactics, like the 2018 tariffs on peanut butter and Harley-Davidsons, but expands the scope to reflect the wider impact of the latest U.S. measures. By targeting politically sensitive goods from Republican-led states—soybeans from Louisiana, for instance—the EU hopes to amplify pressure on U.S. policymakers.

The Bigger Picture: A Global Trade War Looms

The EU’s move is not an isolated act. Canada has already matched U.S. steel and aluminum tariffs with its own $20.6 billion in reciprocal duties, while China and other nations are weighing their options. The Trump administration’s blanket 20% tariff on EU imports, announced alongside the metals duties, has only fueled the fire, threatening $532 billion in annual EU exports to the U.S. (based on 2024 figures). With potential U.S. tariffs on cars, pharmaceuticals, and more still on the horizon, the stakes are sky-high.

Von der Leyen has warned of “immense consequences” for the global economy, predicting supply chain disruptions, higher consumer prices, and a spiral of protectionism. The European Central Bank estimates a 25% U.S. tariff on EU goods could shave 0.5% off eurozone growth in the first year if fully countered—an economic hit Brussels is keen to avoid but prepared to endure.

Negotiation or Escalation?

Despite the tough stance, the EU remains open to dialogue. “We are ready to negotiate,” said EU Trade Commissioner Maroš Šefčovič, who pitched tariff reductions on cars and increased U.S. LNG imports during a recent Washington visit. Yet, with Trump doubling down—threatening “whatever they charge us, we’re charging them”—a resolution seems distant. The EU’s delay of some measures from April 1 to mid-April suggests a window for talks, but optimism is thin.

What’s Next?

Wednesday’s vote will formalize this initial package, with implementation likely days later. The EU is already mulling “further countermeasures” if talks falter, potentially targeting U.S. services (where America enjoys a $108 billion surplus) or limiting access to public procurement.

For businesses and consumers, the fallout is clear: higher costs, disrupted supply chains, and uncertainty from Berlin to Boston.

This isn’t just a trade spat—it’s a test of transatlantic resilience. The EU’s countermeasures signal it won’t back down, but the risk of a full-blown trade war looms large. Stay tuned; the next move could redefine global commerce for years to come.