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European Union ministers, in a meeting on Monday, favoured negotiations over retaliatory actions in response to the tariffs imposed by U.S. President Donald Trump, as the bloc prepared to unveil its first round of countermeasures, Reuters reported.
The U.S. tariffs, which target a range of goods including steel, aluminium and cars, have caused concern within the EU, with Trump accusing certain member states of imposing high barriers to U.S. imports. Starting Wednesday, the U.S. will enforce 20% tariffs on a wide range of EU goods.
During the meeting held in Luxembourg, the ministers voiced the need for a calm response to avoid worsening the already volatile market conditions. “We need to remain calm and respond in a way that de-escalates. The stock markets right now show what will happen if we escalate straightaway. But we will be prepared to take countermeasures if needed to get the Americans at the table,” Dutch Trade Minister Reinette Klever said, according to Reuters.
European Commission President Ursula von der Leyen echoed the call for diplomacy, suggesting the EU was prepared to negotiate a “zero-for-zero” tariff agreement for industrial goods.
The EU is expected to approve an initial package of tariffs targeting up to $28 billion worth of U.S. imports, including goods like dental floss, diamonds, and bourbon, this week.
Trump, on his part, has warned of a 200% tariff on EU alcoholic beverages if the EU proceeds with its planned duties on U.S. bourbon. France and Italy, two major exporters of wine and spirits, have expressed concern over the potential impact of these retaliatory measures.
While the EU prepares a larger package of countermeasures in response to U.S. tariffs on cars and other goods, there are concerns about how far the bloc can push ahead with its strategy. According to the report, U.S. imports to the EU were valued at €334 billion ($366.2 billion) in 2024, compared to €532 billion ($577.2 billion) worth of EU exports to the US.
Meanwhile, French Trade Minister Laurent Saint-Martin suggested that the EU’s Anti-Coercion Instrument (ACI) could be used as a last resort to target U.S. services or limit U.S. companies’ access to European public procurement contracts. However, some leaders, including Ireland’s Foreign Minister Simon Harris, cautioned against using such drastic measures, describing the ACI as a “nuclear option.”
German Economy Minister Robert Habeck also backed the calls for unity, saying the EU must remain united in its approach. “If we have every (EU) country coming out saying they have a problem here with red wine and there with whiskey and here with pistachios, then we will end up with nothing,” Habeck reportedly said.
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