EU prepares $28bn response to Trump's new tariffs

In the coming days, European Union countries are planning to unite against new duties imposed by US President Donald Trump. The EU may approve the first package of countermeasures aimed at US goods worth up to $28 billion.

Reuters reports, citing sources.

The European Union joins China and Canada, which have already responded to US duties, indicating an escalation of the trade conflict with the United States.

Currently, EU countries are facing 25% tariffs on steel, aluminium and cars, as well as «mirroring» tariffs of 20% on most other goods. About 70% of European exports to the US, worth $585 billion, are subject to duties. In the future, the US may impose additional duties on copper, medicines, microchips, and wood.

The European Commission is planning to present a list of US goods that it proposes to retaliate against. It will include meat, cereals, wine, wood, clothing, as well as chewing gum, dental floss, vacuum cleaners and toilet paper.

Trade representatives from all 27 EU countries will meet in Luxembourg to discuss the impact of Trump's tariffs and agree on a joint response.

France is pushing for a broader response that would include halting investments in the US, while Ireland is calling for caution due to its significant share of exports to the US. Italy, on the other hand, doubts that a symmetrical response is appropriate.

Negotiations with Washington have not yet yielded results. European Commissioner for Trade Maroš Šefčovič called them «frank», but stressed that US duties are «harmful and unjustified».

The European Commission's proposal for counter-duties will be put to a vote on 9 April. If it is supported by a qualified majority (15 countries representing 65% of the EU's population), the duties will take effect in two stages: part of them will be applied on 15 April, the rest — a month later.

As a reminder, US President Donald Trump has signed a decree declaring a state of emergency in the country's economy to implement a new customs policy. This initiative provides for the introduction of «mutual duties» in the amount of at least 10%.

Following this, China imposed a 34% duty on all imports from the United States on 10 April. This was a response to the actions of US President Donald Trump, who imposed duties and intensified the trade war.