EU pauses €20 billion retaliation towards Trump’s tariffs – DW – 04/09/2025 | EUROtoday

The European Commission hit pause on its plan to roll out a primary batch of counter-tariffs towards the United States on Thursday, however warned the duties on greater than €20 billion ($22 billion) in US exports would kick in if negotiations with Washington have been “not satisfactory.”

The EU’s U-turn got here after US President Donald Trump paused extra US tariffs for 90 days and shifted most all the way down to the ten% minimal tariff late on Wednesday.

“We want to give negotiations a chance,” European Commission President Ursula von der Leyen wrote on X as she introduced the EU’s personal 90-day suspension.

Europe remains to be weighing up how a lot muscle to wield in its broader retaliation, with the bloc having lengthy burdened it most well-liked negotiations over escalation.

From soybeans to metal

The EU’s deliberate countertariffs — now on maintain — have been brewed up in response to US metal and aluminium duties on the EU which stay in place, and predate Trump’s larger order on so-called reciprocal tariffs.

EU diplomats instructed DW on Wednesday that the primary batch of EU countertariffs of as much as 25% have been set to focus on US metal and aluminium, and a collection of meals merchandise together with poultry, nuts and soybeans.

With an obvious give attention to hitting the heartlands of Trump’s Republican social gathering, the bloc’s listing of deliberate tariffs additionally features a host of different objects from bikes to denims, with the goal of constructing the products dearer and fewer enticing for European consumers.

“The lion’s share of the list consists of products that are easy for consumers and businesses to replace,” Sweden’s Trade Minister Benjamin Dousa mentioned in an announcement on Wednesday after the measures have been initially agreed.

The first spherical of tariffs have been attributable to enter into drive subsequent week, whereas duties on soybeans and almonds — which might deal an even bigger blow to US producers — have been slated to kicked in late within the 12 months.

The pause now provides Brussels respiration area because it seeks to barter a cope with Washington to keep away from a full-blown commerce warfare.

Deal or no deal?

EU Trade Commissioner Maros Sefcovic has been on and off planes and telephone calls to Washington for weeks attempting in useless to safe a deal to avert tariffs. After Brussels went public with its provide to scrap all duties on automobiles and industrial items earlier this week, Trump was fast to show it down.

But after the US president watered down his across-the-board tariff plans, which might affect tons of of billions of euros in EU exports, Europe is doubling down on efforts to search out an accord.

Cinzia Alcidi, an analyst with the Centre for European Policy Studies, warned that the “crude” method US tariffs have been calculated suggests the Trump administration has “no real interest in any meaningful give-and-take.”

Alcidi suspects solely extra US home stress will put the US president in additional of a deal-making mindset. “Tariffs, which are fundamentally a tax on domestic consumers, will lead to higher prices. Businesses, especially those reliant on imported components, will also struggle,” she wrote on Tuesday.

“If inflation climbs and public dissatisfaction grows, Trump’s approval ratings may dip, and unease within Congress may grow louder.”

US tech, providers subsequent in line?

But a lot of the ache linked to US tariffs will even be felt in Europe, says Niclas Poitiers, who warns  companies and voters are rising “nervous.”

“I think there’s a balance to be struck between the necessity to react strongly and the need to show that one is problem-oriented and one doesn’t want to escalate,” the analysis fellow at Brussels-based assume tank Bruegel instructed DW.

As Europe mulls longer-term retaliation choices, US providers exports, together with these of Big Tech platforms or consulting companies, might transfer within the EU’s focus down the road.

Sometimes known as Brussels “nuclear option” on commerce, the EU’s so-called Anti-Coercion Instrument (ACI) “allows [the EU] to do many more things than the normal trade war would allow you to do,” mentioned Poitiers.

The ACI — created in 2023 in response to China’s suspected block on Lithuanian imports over its help for Taiwan — would enable the EU to impose restrictions on US banks, curb income entry for streaming platforms like Netflix, and even revoking US patents.

But an EU diplomat instructed DW there’s “no appetite to pull that trigger for now,” including that any discuss of focusing on tech stays “in the realm of speculation.”

China tariffs stoke fears in Europe

A extra urgent concern for the EU is a potential inflow of low cost items from China and different Asian nations as they need to new markets exterior the US.

China publicizes tariffs of 84 % on US imports

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EU Commission President Ursula von der Leyen mentioned the issue on the telephone with Chinese Premier Li Qiang on Tuesday.

According to a abstract revealed by Brussels, they talked a few “mechanism for tracking possible trade diversion and ensuring any developments are duly addressed.”

Edited by: Uwe Hessler

This article was first revealed on April 9 and up to date for contemporary developments concerning EU tariffs on April 10.