EU Trade Ministers Near Agreement on Retaliatory Tariffs Against US

Trade ministers from the European Union moved closer to finalizing a list of U.S. goods to target in retaliation for Washington’s recent steel and aluminum tariffs during a meeting in Luxembourg on Monday.

The first round of countermeasures, likely to be approved on Wednesday, is expected to include American products such as bourbon whiskey—though its inclusion remains contentious following threats from U.S. President Donald Trump to impose 200% tariffs on European wines and spirits if whiskey remains on the list. France, Italy, and Spain have pushed to exclude whiskey from the measures to avoid further escalation.

The retaliatory tariffs will be implemented in phases, with the first wave beginning April 15 and a second round set for May 15. The EU aims to use these measures as leverage to bring the U.S. back to negotiations while signaling its readiness to defend its trade interests.

Divisions Emerge Over Broader Response

A second phase of the EU’s strategy—responding to broader U.S. tariffs, including a 20% levy on other EU imports and a 25% duty on cars—remains under debate. Member states are divided on how aggressively to respond. Larger economies like France and Germany have advocated for stronger countermeasures, such as blocking U.S. companies from EU public contracts, while smaller states, including Spain, Italy, and Ireland, favor a more cautious approach.

EU Commission Vice President Maroš Šefčovič warned that the bloc is facing the "most important paradigm shift in global trading patterns since the Second World War." While ministers agreed on the need to avoid an all-out trade war, Šefčovič cautioned that engaging with the U.S. would require significant time and effort.

EU Commission President Ursula von der Leyen revealed that the bloc had proposed a bilateral tariff exemption for cars and industrial goods, but Washington has yet to respond. If negotiations fail, Šefčovič warned, the EU is prepared to deploy "every tool in our trade defense arsenal."

Potential Escalation and New Trade Tools

Some member states, led by France and backed by Germany, have suggested targeting U.S. tech giants like Microsoft, Amazon, Google, and Meta, though specifics remain unclear. France has also pushed for measures against U.S. digital services—a move opposed by Ireland, which relies heavily on American investment in tech and pharmaceuticals.

Irish Trade Minister Simon Harris criticized the idea, calling it "an extraordinary escalation at a time when we must be working for de-escalation." Meanwhile, French Trade Minister Laurent Saint-Martin insisted the EU should "not exclude any option," citing the bloc’s newly established "anti-coercion instrument"—a powerful trade tool designed to retaliate against economic pressure.

The ministers also discussed EU-China trade relations, acknowledging the need to balance concerns over a potential flood of Chinese goods into Europe with the desire to avoid further tensions with Beijing.

Despite efforts to present a united front, EU diplomats privately expressed skepticism about reaching a resolution with the Trump administration. "I don’t know how you can negotiate out of this," one diplomat said. "But what are the politicians supposed to say? 'Prepare for the crash?'"