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The European Union has warned that it is prepared to immediately retaliate against President Trump’s new tariffs, which are set to be announced tomorrow.
Some shit you should know before you read: If you’re unaware, President Trump has vowed to impose sweeping new tariffs on April 2nd, branding the date as “Liberation Day” in a move aimed at rebalancing what he calls decades of unfair trade practices. Central to his plan is the introduction of “reciprocal tariffs,” which would match—dollar for dollar—the duties that other countries impose on American goods. Trump argues that US industries have long been disadvantaged by trade deals that allow foreign competitors to benefit at America’s expense, particularly pointing to higher average tariffs in nations like South Korea and China. However, there remains a significant grey area surrounding the scope of these measures; while Trump has stated that no country is exempt, it’s unclear whether the tariffs will be universally applied or selectively targeted at key trading partners.
What’s going on now: Ahead of Trump’s announcement related to reciprocal tariffs, EU Commission President Ursula von der Leyen warned that the European Union is prepared to respond quickly and decisively if the United States escalates trade tensions. “We do not necessarily want to retaliate, but if it is necessary, we have a strong plan to retaliate and we will use it,” she told the European Parliament, stressing that “Europe has not started this confrontation.”
Von der Leyen also made clear that the EU will approach any potential negotiations “from a position of strength,” citing Europe’s global leverage in “trade, technology, and the size of our market.” She noted that while Europe is open to dialogue, “all instruments are on the table,” including tariffs and regulatory measures.
This comes as the EU has already prepared countermeasures worth up to $28 billion, including tariffs on American goods such as jeans, motorcycles, and bourbon—items that were previously spared under the Biden administration but are now back on the table. An additional $20 billion of tariffs is under consideration, potentially targeting US exports of steel, aluminum, poultry, beef, seafood, and nuts.
More on US-EU Trade: The US-EU trade relationship is one of the most significant in the world, valued at over $1.5 trillion in 2024. The EU was America’s largest export market last year, ahead of Canada and Mexico, with key imports including pharmaceuticals, cars, telecommunications equipment, and alcoholic beverages. The EU also remains a vital customer of US goods, importing a broad range of American products from industrial equipment to agricultural goods. According to Von der Leyen, “1 million American jobs depend directly on trade with Europe.”
