Brussels eyes fresh retaliation as it struggles to counter Trump tariffs

The European Commission plans to unveil its proposal for retaliatory tariffs against the US early next week, as Brussels grapples with how to respond to the trade dispute ignited by President Donald Trump.

European Commission trade spokesperson Olof Gill confirmed that a retaliation package would be presented to EU member states soon. Still, he noted the EU remains open to talks with Washington. “Our door remains open, and we’re ready to engage,” Gill said, although he acknowledged the situation was worsening, not improving.

The US has already slapped tariffs on EU steel, aluminum, and automobiles, and introduced a sweeping 20 percent “reciprocal” tariff on nearly all other European goods.

So far, the EU has only formally responded to the metal tariffs. Its initial countermeasure package, which mirrored the impact of US tariffs by targeting €26bn worth of American products, has been trimmed down to €21bn following internal pushback from member states, according to two EU officials.

Countries including France, Italy, and Ireland requested the removal of certain items like bourbon, wine, and dairy from the list, fearing further retaliation from Washington. Trump had previously threatened to impose a 200 percent tariff on European alcoholic beverages if bourbon was targeted.

Despite these adjustments, EU countermeasures will still impact US goods such as soybeans, chicken, and motorcycles, with implementation scheduled between April and December 1.

EU officials say negotiations with the US have gone nowhere. Commission President Ursula von der Leyen said Monday that Washington has not engaged with Brussels’ offer to mutually eliminate industrial tariffs—particularly on cars. “Our offer still stands,” she said.

Gill also pushed back on US Trade Advisor Peter Navarro’s broader demands. Navarro has criticized VAT policies and what he calls unfair product standards, but Gill said the EU wouldn’t consider changes outside of tariff discussions. He emphasized that Brussels would not compromise on health and safety standards, which include restrictions on genetically modified food imports.

Trade Commissioner Maroš Šefčovič, who has held talks with US Commerce Secretary Howard Lutnick, reportedly told EU members that Lutnick lacks decision-making power and must defer to President Trump, according to two sources familiar with the discussions.

Swedish trade minister Benjamin Dousa voiced support for a negotiated solution. “We don’t want a trade war or disputes—especially not with a close partner like the US,” he said following a meeting of EU trade ministers in Luxembourg. “We didn’t start this. We want to expand trade.” However, he noted that member states are prepared to back countermeasures if necessary, saying, “There is clear unity on that front.”

Still, not all countries agree on how forcefully to respond. France, Germany, and Spain are urging swift and firm retaliation, while Italy, Greece, Romania, and Hungary caution against escalating the standoff.

Those in favor of a tougher stance want the Commission to consider deploying its so-called “bazooka”—an anti-coercion tool that could target US tech companies and service providers.

Officials admit that matching the US’s €373bn in tariffs is complicated without inadvertently hurting European industries that depend on American imports. Some hope the economic fallout and market turmoil caused by the tariffs in the US will eventually force Trump to reconsider.

“It’s a massive self-inflicted wound,” one EU official said. “The longer it continues, the greater the pressure on him to reverse course.”