The European Union (EU) has announced its readiness to implement countermeasures in response to new tariffs imposed by U.S. President Donald Trump, escalating tensions in transatlantic trade.

The tariffs, which include a 20% levy on European goods and a 25% tariff on automobiles made outside the U.S., are set to take effect next week.

European Commission President Ursula von der Leyen emphasized the EU's preparedness to protect its interests while urging a shift from confrontation to negotiation.

Von der Leyen criticized the U.S. tariffs as harmful to businesses and consumers globally, stating that the EU is finalising a first package of countermeasures targeting U.S. steel tariffs and preparing additional measures if negotiations fail.

She highlighted the bloc's economic strength, noting that Europe holds significant leverage in trade, technology, and market size. The EU recorded a €156.6 billion goods trade surplus with the U.S. in 2023 but faces challenges due to a €108.6 billion services trade deficit.

The EU's countermeasures include reinstating previously suspended tariffs on U.S. goods—such as whiskey, motorbikes, and jeans—effective April 1, 2025, and proposing new tariffs worth €18 billion on industrial and agricultural products.

Consultations with EU stakeholders are underway to ensure targeted and proportionate responses.

European leaders expressed concerns about the potential for a trade war. Swedish Prime Minister Ulf Kristersson warned of economic harm from rising trade barriers but reassured that Sweden's economy remains robust.

Ireland's Tanaiste Simon Harris called for a measured EU response while seeking a negotiated solution.

Von der Leyen acknowledged issues in global trade but argued that tariffs would exacerbate inflation rather than resolve structural problems. She reiterated the EU's openness to dialogue but stressed its readiness to act decisively if necessary.

The unfolding situation marks a critical juncture in EU-U.S. trade relations, with significant implications for global economic stability.

Agencies