The European Union is gearing up to impose counter-tariffs on U.S. goods worth up to €26 billion ($28.4 billion) in response to President Donald Trump’s newly announced universal tariffs, which European Commission President Ursula von der Leyen described as a “major blow to the world economy.”
Von der Leyen confirmed that the EU is finalizing an initial package of retaliatory tariffs, set to take effect by mid-April, targeting U.S. steel and aluminium imports.
The move comes after the U.S. imposed steel and aluminium tariffs on March 12, followed by Trump’s broader 10% minimum tariff on most imports, with a steeper 20% rate for the EU, announced on Wednesday.
Speaking on Thursday in Samarkand, Uzbekistan, ahead of an EU-Central Asia summit, von der Leyen warned of “further countermeasures” if negotiations with Washington fail.
Digital services and procurement in focus
According to Reuters, a French government spokesperson hinted that additional measures, possibly targeting U.S. digital services and other sectors, could follow by late April.
- While no final decisions have been made, the EU is considering restrictions on U.S. tech firms, financial services, and public procurement access to maximize political pressure.
- Italy’s Prime Minister, Giorgia Meloni, emphasized the EU’s preference for a negotiated solution but did not rule out an “adequate” retaliatory response.
- EU trade ministers are expected to discuss the bloc’s next steps at a meeting in Luxembourg on Monday.
Why the EU faces an uphill battle
The EU’s ability to match U.S. tariffs is constrained by trade imbalances. The EU exports to the U.S. in 2024 stood at €532 billion ($582 billion), while the U.S. exports to the EU stood at €334 billion ($365 billion)
Additionally, the EU is hesitant to target U.S. oil, gas, and pharmaceuticals, which make up nearly 35% of its imports from America.
Meanwhile, a former EU trade negotiator and Bruegel think-tank fellow, Ignacio Garcia Bercero, has urged smarter, targeted retaliation—such as limiting U.S. firms’ access to EU public contracts—rather than broad tariffs.
He also criticized Trump’s inclusion of EU tax policies in tariff calculations as “economic coercion.”
Trade war risks and economic fallout
The European Central Bank (ECB) estimates that a 25% U.S. tariff on EU goods could shave 0.3% off eurozone growth in the first year, worsening to 0.5% if the EU retaliates.
- A Frontier Economics report projected a $209 billion hit to EU exports under a 20% tariff scenario.
- French President Emmanuel Macron is meeting with business leaders on Thursday to assess the impact of the new U.S. tariffs, which take effect this Saturday.
- While condemning Trump’s move, von der Leyen acknowledged “unfair advantages” in global trade and expressed willingness to reform trade rules.
“It is not too late to address concerns through negotiations,” she said, leaving the door open for a diplomatic resolution.
What you should know
Nigeria is also at the receiving end of the Trump’s sweeping tariff policies a baseline 10% tariff on all U.S. imports, alongside sharper, country-specific reciprocal tariffs aimed at nations that impose steeper duties on American goods.
- In the new policies announced on Wednesday, Exports from Nigeria to the US will attract a 14% tariff compared to the 27% that the US government claims it receives from Nigeria.
- The Trump administration’s reciprocal tariff policy is also set to impact several African nations, with countries like Nigeria, Ghana, Ethiopia, and Mauritius featured on the latest White House list of tariff adjustments.
While Nigeria is not among the highest tariff imposers, the adjustment signals that the U.S. is casting a wide net that includes not just economic rivals but also developing nations with whom it previously maintained preferential trade terms.
