The European Union is preparing to respond to Donald Trump‘s new wave of tariffs. In the next few days, EU leaders are expected to approve a package of retaliatory measures. These will target up to $28 billion worth of American goods. Items on the list range from dental floss to diamonds.
This move places the EU alongside China and Canada, who have already acted in response to U.S. tariffs. Many fear this could mark the beginning of a trade war. If that happens, consumer prices may rise around the world, and economies could face recession.
Tariffs Strike at the Core of EU Exports
Starting Wednesday, the EU will face new U.S. import tariffs. A 25% tax will apply to steel, aluminum, and cars. A 20% “reciprocal” tariff will apply to most other goods. These measures affect roughly 70% of all EU exports to the U.S. 
Last year, those exports were worth €532 billion ($585 billion). More products may be added to the list soon. Potential targets include semiconductors, pharmaceuticals, timber, and copper.
Brussels Crafts Its Response
The European Commission, which directs EU trade policy, is preparing a response. Instead of matching every U.S. tariff, the EU is focusing on selected goods.
Their draft list includes American meat, cereals, wine, wood, and clothing. Everyday items like chewing gum, vacuum cleaner, and toilet paper are also on it. The goal is to pressure Washington, not provoke further escalation.
Bourbon on the Front Lines
One product on the list—bourbon whiskey—has sparked particular debate. The EU may apply a 50% tariff to it. Trump responded quickly. He threatened a 200% counter-tariff on European alcoholic beverages.
This has raised concern in wine-exporting countries like France and Italy. Still, the EU supports free trade. Its leaders want any response to be coordinated and backed by all members. Their goal is to push the U.S. back to the negotiating table.
First United Talks Since the Shock Announcement
On Monday, Luxembourg will host an important meeting. Trade ministers from all 27 EU countries will attend. It will be their first full political discussion since Trump announced the tariffs.
Diplomats say their main aim is to show unity. They want to express a willingness to talk but are also ready to act. An EU diplomat explained that our biggest fear after Brexit was that unity would fall apart, but after years of talks, that didn’t happen. Now, with trade under pressure, everyone understands the value of a joint approach.
Diverging Voices Within the Union
Despite the push for unity, views among EU countries differ. France wants a strong response. President Emmanuel Macron has proposed more than just tariffs. He even suggested halting European investments in the U.S. until there’s more clarity.
In contrast, Ireland wants a measured and careful reaction. Nearly one-third of Ireland’s exports go to the U.S., making it highly exposed. Italy, the EU’s third-largest exporter to the U.S., is questioning whether retaliation is the right move at all.
A diplomat from one member state admitted that it’s a difficult balance. If the response is too weak, the U.S. might ignore it. But if it’s too strong, it could lead to escalation.
Diplomatic Efforts Falter
So far, discussions with the U.S. have made little progress. EU trade chief Maroš Šefčovič met with American officials last Friday. Their meeting lasted two hours. He described the conversation as frank and made it clear that the EU views the tariffs as damaging and unjustified.
Tariffs Timeline and Next Steps
The Commission’s counter-tariff proposal will be voted on this Wednesday. It will likely pass unless at least 15 member countries—representing 65% of the EU population—vote against it.
If approved, the new tariffs will take effect in two stages. The first group of measures will begin on April 15. The rest will follow a month later.
Also this week, Commission President Ursula von der Leyen will meet with top executives from key industries. She will speak with leaders in the steel, automotive, and pharmaceutical sectors. These talks will help the EU assess the impact of U.S. actions and plan further steps.
