EU Faces Decision on US Tariffs Amidst Trade Tensions
Member states respond to new US tariffs on European goods, with potential countermeasures on the horizon.
On April 3, 2025, European Union member states expressed their discontent over the announcement of new tariffs by the United States on European exports.
EU officials are currently deliberating on an appropriate response, facing the challenge of coordinating action among the 27 member countries.
The initial countermeasures proposed by the European Commission are set to take effect on April 15, with a possibility of a second phase of measures by the end of April.
French President Emmanuel Macron characterized the US decision as 'brutal' and 'unfounded,' additionally suggesting that French companies operating in the US suspend any planned investments.
A crucial deadline looms for the EU, as it has seven days to persuade the US administration to reconsider the imposition of reciprocal tariffs, which are projected to reach 20% on nearly all exports from the EU starting April 9. This new round of tariffs adds to previously announced duties on steel, aluminum, and automotive products.
Overall, the measures could affect up to 370 billion euros worth of European products, representing approximately 70% of EU goods exported to the US. Economic estimates provided by senior EU officials suggest that these tariffs could generate an additional 81 billion euros in duties, a significant increase from the annual figure of 7 billion euros previously collected, assuming trade levels remain constant.
However, officials anticipate a likely decline in trade volumes as a result of these new tariffs.