EU Proposes 25 Per Cent Counter-Tariffs On US Goods As Global Trade Tensions Escalate: Report

The European Commission has reportedly proposed a set of retaliatory tariffs targeting US products in response to President Donald Trump's duties on steel and aluminium.

According to a document reviewed by Reuters, the EU's counter-tariffs include a 25 per cent levy on a variety of American goods, such as sausages, poultry, eggs, diamonds, and dental floss.

The phased rollout will begin on May 16 for some products, while others, including almonds and soybeans, will be subject to tariffs from December 1.

The EU’s trade response notably excludes certain high-profile goods like bourbon, wine, and dairy, which were initially considered in earlier drafts. The exclusion comes after fears that targeting bourbon might provoke a disproportionate response from the US, including Trump's threat of a 200 per cent tariff on EU alcoholic beverages.

Trade Commissioner Maros Sefcovic remarked that the current measures are less impactful than the earlier suggested package valued at €26 billion ($28.45 billion). Still, the EU is tightening its grip, having already moved on April 1 to limit steel imports by 15 per cent.

Additional restrictions on aluminium, including potential import quotas, are also under discussion. EU member states are expected to vote on the proposed measures on April 9.

Also Read : China Says Will Not Back Down To US' 'Blackmail', Promises To 'Fight To The End'

Trump Defends His Tariff Policies

Despite initial market turbulence triggered by the growing trade conflict, stock indices began to show signs of recovery. Trump defended his tariff policy as necessary to rebuild the U.S. industrial base, stating, "It's the only chance our country will have to reset the table. Because no other president would be willing to do what I'm doing, or to even go through it."

Even as the EU retaliates, officials remain open to talks. "Sooner or later, we will sit at the negotiation table with the US and find a mutually acceptable compromise," said Sefcovic. The EU has already been navigating existing tariffs on cars and metals and faces an additional 20 per cent duty on other goods starting Wednesday. Trump has not ruled out further actions, including on alcoholic beverages.

Uncertainty remains over whether the US administration’s tariff push is a negotiation strategy or a long-term shift in trade policy. According to Politico, Treasury Secretary Scott Bessent met Trump over the weekend to encourage efforts to strike more deals with allies.

White House economist Kevin Hassett emphasised that Trump is committed to a policy reversal on trade liberalisation: "He's doubling down on something that he knows works... But he is also going to listen to our trading partners."

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