Facing a barrage of tariffs under President Donald Trump’s renewed administration, the European Union is navigating a delicate balancing act—retaliating where necessary while keeping the door open for diplomacy to avoid a full-scale trade war.
The Tariff Timeline
Trump’s tariff campaign has hit the EU in three major waves:
- March: 25% duties were imposed on EU steel and aluminum exports.
- Last week: All foreign-made cars, including those from the EU, were slapped with a 25% tariff.
- This week: A sweeping 20% tariff on all remaining EU goods took effect, part of a wider move against dozens of countries, including China.
How the EU Is Responding
So far, the EU has adopted a methodical “think-before-you-act” strategy. After the initial metals tariffs in March, the bloc prepared a carefully targeted list of U.S. goods to hit back—items like soybeans, cosmetics, and motorcycles—many chosen with an eye on Republican strongholds.
EU member states are expected to approve the list at a Wednesday meeting, with most countermeasures taking effect in May and some rolling out in December.
Additionally, tariffs that were suspended during Trump’s first term will be automatically reinstated by mid-April.
The EU is now preparing its next move in response to the car tariffs and the blanket 20% duties. While the details remain under wraps, France is spearheading efforts—backed by Germany and Austria—to target major U.S. tech firms if negotiations stall.
France and Germany have also urged Brussels to be ready to deploy its “trade bazooka”—a new anti-coercion instrument. Though never used, the tool gives the EU broad powers to counter economic pressure, including restricting trade in services.
Despite its growing arsenal, the EU’s preference is clear: it wants dialogue, not escalation.
“Sooner or Later, We’ll Talk”
EU Trade Commissioner Maros Sefcovic has been leading the charge for a diplomatic resolution. He’s made two trips to Washington this year—most recently in March—and has held ongoing talks with U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.
However, progress has been slow. EU Commission President Ursula von der Leyen revealed that Brussels offered the U.S. a bilateral exemption on car and industrial goods tariffs—an offer that was met with a cold shoulder.
Behind the scenes, officials admit there’s growing uncertainty over what the U.S. really wants—and whether they’re even negotiating with the right people. Trump’s trade advisor, Peter Navarro, who is widely seen as the architect of this aggressive trade policy, hasn’t been involved in official talks. Yet, his influence is undeniable.
What Is Trump Really After?
Navarro has voiced longstanding frustration with what he describes as the EU’s “non-tariff barriers.” His concerns span a broad range of issues, including:
- The EU’s value-added tax (VAT) system
- Food safety and environmental standards
- Recent digital regulations, namely the Digital Markets Act and Digital Services Act, which he claims unfairly target U.S. tech firms
“Anyone who wants to talk to us should come ready to talk about lowering your non-tariff barriers,” Navarro said in an interview Monday.
The EU, however, strongly rejects these claims. “We don’t share the U.S. assessment of what constitutes a non-tariff barrier,” said EU spokesman Olof Gill. He also emphasized that tech regulations are “not part of the tariff discussions” and will not be used as bargaining chips.
What’s Next?
The risk of further tariffs remains high. Trump is reportedly eyeing new duties on the pharmaceutical sector—a key pillar of the EU economy, particularly in Ireland.
As tensions escalate, the EU remains poised between confrontation and negotiation, seeking to defend its interests without letting the conflict spiral out of control. But with each new tariff,