April 09, 2025
Brussels, April 9, 2025 – In a significant escalation of the ongoing trade war between the United States and the European Union, EU member states have voted to impose retaliatory tariffs on $23 billion worth of U.S. goods. This decision comes in response to former President Donald Trump's 25% tariffs on imported steel and aluminum.
The European Commission, the EU's executive arm, proposed the tariffs, which will be implemented in stages starting April 15, with subsequent phases on May 15 and December 1. While the full list of affected goods has not been disclosed, some products initially considered, such as bourbon, were removed after the U.S. threatened to impose a 200% tariff on European alcoholic beverages.
EU officials have expressed their preference for a negotiated settlement to resolve trade disputes, emphasizing that the U.S. tariffs are unjustified and harmful to both economies. Ursula von der Leyen, head of the European Commission, has offered Trump a zero-for-zero tariffs deal on industrial goods, including cars, but Trump has deemed this insufficient.
The EU's move marks a strategic effort to exert political pressure while minimizing economic damage. France's Economic Minister Eric Lombard stated that the second package of measures would consider not only European imports but also other ways to respond, aiming to bring both sides to the negotiating table on equal footing.
In a related development, Trump has announced a dramatic increase in tariffs on Chinese imports, raising them to 104% after Beijing missed a deadline to lift its retaliatory tariffs. This move further intensifies the global trade tensions, with both the EU and China now facing substantial economic impacts from U.S. policies.
Financial markets have reacted sharply to the escalating trade war. European stocks have seen a significant drop, with major indices like the FTSE 100 and DAX 30 down by over 2%. U.S. markets are also experiencing volatility, with the Dow Jones Industrial Average and S&P 500 showing declines amid investor concerns over prolonged trade disputes. Analysts warn that continued uncertainty could lead to further market instability and potential impacts on global economic growth.
