LUXEMBOURG, April 7 – In the face of rising trade tensions with the United States, the European Union has signaled a clear preference for negotiations rather than retaliation. While preparing a set of targeted countermeasures, EU ministers meeting in Luxembourg agreed that dialogue should remain the primary course of action in response to the new tariffs imposed by President Donald Trump.
These tariffs, which come into effect Wednesday, include a 25% levy on steel, aluminum, and cars, as well as reciprocal 20% duties on nearly all other goods imported into the U.S. from the EU. The measures are part of Trump’s ongoing policy to pressure countries he accuses of unfair trade practices that disadvantage American businesses.
During Monday’s trade ministers’ meeting, European leaders emphasized the importance of maintaining a measured approach. The objective, they said, is to avoid plunging the global economy into another full-scale trade conflict.
“We must stay cool-headed and take steps that encourage de-escalation,” said Dutch Trade Minister Reinette Klever. “We are monitoring the financial markets closely, and the signals are clear escalation will bring volatility and damage to both sides. However, we are ready with proportionate countermeasures if needed to bring the U.S. to the negotiating table.”
European Commission President Ursula von der Leyen echoed this sentiment, suggesting that the EU is open to negotiating a “zero-for-zero” tariff agreement, particularly focused on industrial goods. She noted that the bloc is prepared for meaningful talks aimed at reducing trade barriers on both sides of the Atlantic.
Tensions Rise but EU Seeks Constructive Path Forward
Despite the EU’s willingness to talk, progress with Washington has so far been limited. EU Trade Commissioner Maros Sefcovic described his recent meeting with U.S. officials as “frank” and direct, pointing out that the American tariffs are unjustified and already harming key sectors across Europe.
As a precautionary step, the EU is preparing to adopt an initial list of countermeasures targeting approximately $28 billion worth of U.S. goods. The targeted items range from consumer products like dental floss to high-value luxury goods such as diamonds. These measures are a direct response to the steel and aluminum tariffs, not yet the broader reciprocal tariffs expected later in the week.
However, the implementation of these countermeasures is politically sensitive. Trump has already threatened a retaliatory 200% tariff on EU alcoholic beverages if the bloc proceeds with a proposed 50% tariff on American bourbon. This has raised concerns in wine and spirits-exporting countries like France and Italy, where officials worry about the fallout on domestic producers.
The EU plans to develop a more comprehensive response package by the end of April, which will address the full scope of U.S. tariffs, including those on cars and other goods. Still, the challenge remains: the EU has fewer American goods to target in return. Last year, EU exports to the U.S. totaled 532 billion euros, while imports from the U.S. were only 334 billion euros, leaving Brussels with a narrower set of options.
Diverging Views on How Hard to Push Back
Some EU nations are calling for a tougher stance. French Trade Minister Laurent Saint-Martin suggested that all instruments, including the EU’s Anti-Coercion Instrument (ACI), should be considered. The ACI, a legislative tool that could restrict access to EU public tenders or target services, is viewed by some as a powerful way to respond to economic pressure.
“There should be no taboo topics,” said Saint-Martin. “Goods, services, procurement everything must be on the table. The EU’s toolkit is extensive and, if needed, can be deployed in a very assertive manner.”
But others argue that such actions could provoke greater harm than benefit. Irish Foreign Minister Simon Harris, whose country sends nearly a third of its exports to the U.S., warned against jumping to the most extreme options. He referred to the ACI as a “nuclear option” and said that most member states believe it is too early to consider such a step.
German Economy Minister Robert Habeck also advised caution but noted that the EU holds significant leverage if it acts in unity. “Markets are already showing signs of distress, and a continued escalation will hurt both sides,” he said. “In fact, the U.S. is not in as strong a position as it thinks.”
Habeck pointed out that even prominent American figures such as Elon Musk support the idea of eliminating tariffs between the two regions altogether. “This shows that even in the U.S., there is recognition that a tariff-free approach would benefit everyone,” he added.
Still, he cautioned that the EU must act cohesively. “If every country lobbies only for its own narrow interest whether it’s whiskey in one place, pistachios in another, or red wine elsewhere we risk fragmentation and losing our collective strength.”
As the deadline for the U.S. tariffs nears, the EU appears to be walking a fine line: signaling readiness to defend its interests while keeping the door open for diplomatic solutions. The coming weeks will likely reveal whether cooler heads will prevail or if the transatlantic trade dispute will spiral further into confrontation.