EU Proposes 25% Retaliatory Tariffs on US Goods

The European Commission has proposed a 25% retaliatory tariff on a range of US products in response to President Donald Trump’s tariffs on steel and aluminum. The countermeasures are set to be implemented in two phases: on May 16 and Dec. 1. The targeted American goods include soybeans, almonds, diamonds, eggs, dental floss, sausages, and poultry. This move risks new trade barriers around the world, potentially reversing decades of global trade liberalization.

According to Reuters, EU trade chief Maroš Šefčovič stated on April 7 that the proposed measures would be less severe than the previously considered €$26 billion (US$28.45 billion) plan. Notably, bourbon, wine, and dairy products, originally included in the draft list in March, have now been excluded.

The earlier proposal had suggested a 50% tariff on bourbon, prompting Trump to threaten a 200% duty on EU alcoholic beverages. That warning sparked concern in France and Italy, where wine is a key export. In parallel, the EU reinforced existing safeguards on steel imports on April 1, targeting a 15% reduction. The Commission is also evaluating the introduction of aluminum import quotas, though no final decision has been made. EU member states are expected to vote on the full proposal on April 9.

European Commission President Ursula von der Leyen announced that the EU had offered the US a proposal to eliminate tariffs on all industrial goods, in an effort to de-escalate tensions and advance trade talks. She emphasized the EU’s willingness to negotiate, but also its readiness to respond if discussions collapse.

“We are open to negotiations with the United States. In fact, we have proposed a zero-tariff deal for industrial products, similar to what we have successfully achieved with other partners,” von der Leyen stated on Monday afternoon. “Europe is always ready to strike a fair deal. That offer remains on the table. But we are also prepared to respond and protect our interests if needed.”