Facing Trump's renewed trade protectionism, EU officials unanimously advocate "staying calm", preferring to resolve the new round of tariff disputes through negotiations, although a countermeasure list is also being prepared.
Table of Contents
ToggleEU Focuses on Negotiations, Hopes to Avoid Trade War Escalation
As former US President Trump is likely to return to the White House, the trade ministers of 27 EU countries gathered in Luxembourg on Monday (April 7) to discuss the upcoming US tariff policies. Although the EU is prepared with the first wave of countermeasures, most member states still prefer negotiations over direct confrontation.
Starting this Wednesday, the US will impose a 25% tariff on imported European steel, aluminum, and automobiles, and a 20% "reciprocal tariff" on most other goods. Facing this potential trade war, the internal atmosphere of the EU is tense but pragmatic.
Dutch Trade Minister Reinette Klever emphasized: "We should respond calmly to reduce tensions. The stock market's reaction already shows that escalating confrontation will lead to greater losses. But when necessary, we will be prepared to retaliate and force the US back to the negotiating table."
EU Proposes "Zero Tariff Agreement", US Response Lukewarm
European Commission President von der Leyen stated that the EU is ready to consult with the US, proposing a "zero-for-zero industrial goods agreement" as a solution. However, negotiation progress is not optimistic.
EU Trade Commissioner Maros Sefcovic noted that after a two-hour meeting with the US side last week, he frankly described the atmosphere as "direct" and clearly told the US that these tariffs are "unreasonable and destructive".
Countermeasure List Revealed, First Wave Targets $28 Billion US Goods
Despite prioritizing negotiations, the EU has prepared the first wave of countermeasures, targeting US imported goods worth up to $28 billion, including dental floss and diamonds, in response to steel and aluminum tariffs. However, this list does not yet include responses to "reciprocal tariffs".
Trump warned that if the EU imposes a 50% tariff on US bourbon whiskey, the US will retaliate with tariffs up to 200% on European alcoholic beverages, causing concern among wine and spirits export giants like France and Italy.
Comprehensive Counterattack Difficult, EU's Bargaining Chips Limited
The EU plans to publish a larger-scale countermeasure plan by the end of April, responding to US car tariffs and "reciprocal tariffs". However, Brussels has relatively limited room for retaliation in goods trade. In 2024, the total US imports from the EU were 532 billion euros, while EU imports from the US were only 334 billion euros.
Some officials therefore suggest expanding the battlefront to services and public procurement. French Trade Minister Laurent Saint-Martin proposed using the EU's "Anti-Coercion Instrument" (ACI) to limit US companies' access to the European market.
He said: "We cannot rule out any options, whether goods or services. The ACI is a powerful tool that can be very aggressive."
"Nuclear Option" Sparks Disagreement, Small Countries Call for Restraint
However, opinions differ on whether to invoke the ACI. Irish Foreign Minister Simon Harris frankly stated: "The ACI is an extremely extreme option, and I believe most EU countries are currently unwilling to use it."
German Economic Minister Robert Habeck pointed out that as long as the EU remains united, it is in a favorable position. He said: "The stock market has already seen declines, and losses could be greater... The US is actually in a weak position." He also mentioned that US entrepreneur Musk recently supported removing all tariffs between the US and EU, reflecting US pressure.
But he also warned that if EU countries only focus on their own industrial interests, such as seeking exemptions for small items like wine, whiskey, and pistachios, they will ultimately "do nothing".
Facing the pressure of Trump's tariff policies, the EU chooses negotiations as the primary route but does not rule out the possibility of counterattack. This transatlantic trade contest may have just begun.
Risk Warning
Cryptocurrency investment carries high risks, and its price may fluctuate dramatically. You may lose all of your principal. Please carefully assess the risks.
