EU prepares countermeasures as US imposes 20 percent tariff on European products

Brussels signals willingness to negotiate but warns of retaliatory steps if trade talks collapse.

Flags from the 27 European Union member states fly in the wind in front of the European Parliament on April 5, 2025, in Brussels, Belgium. Photo by Thierry Monasse/Getty Images

By Anna Fadiah and Hayu Andini

The European Union is bracing for a new chapter in global trade tensions as it prepares countermeasures after the United States imposed a 20 percent tariff on European products. The move, announced by US President Donald Trump, has triggered concern and urgency within the EU, which now finds itself weighing diplomacy against economic defense.

In response, EU trade ministers will convene in Brussels on Monday to assess the situation and discuss potential retaliatory actions. “While a constructively negotiated solution remains the EU’s preference, ministers will also discuss possible countermeasures if the situation requires it,” stated the Council of the European Union’s press service. The meeting underscores the seriousness of the US decision and the EU’s resolve to protect its economic interests.

Mounting pressure on EU industries

The 20 percent tariff will affect a range of European exports, including cars, steel, aluminum, industrial machinery, construction equipment, and pharmaceuticals. These sectors are vital not only to the EU’s economy but also to millions of workers and small businesses across member states.

The European Commission has already started coordinating with member states to determine the next steps. “The aim is to ensure that the EU approach remains measured and effective, protecting our economic interests, while being open to mutually beneficial solutions,” the Commission stated.

President Ursula von der Leyen reiterated Brussels’ openness to dialogue, but she emphasized that Europe cannot afford to appear weak or unprepared. “We are still willing to negotiate with Washington on the tariffs, but we are also preparing countermeasures if the talks reach a deadlock,” she said. The EU’s response, she stressed, will be grounded in unity and legality under World Trade Organization (WTO) rules.

The United States is the European Union’s largest trading partner. In 2023, more than 20 percent of EU exports were bound for the US. Trade in goods and services between the two reached record highs, signaling a mutually beneficial economic relationship that spans multiple sectors and decades of collaboration.

However, Trump’s rationale for the tariffs frames them as a way to establish “economic independence” and reduce the US national debt, which he claims has reached “trillions of dollars.” The new system of reciprocal tariffs sets a base of 10 percent, with adjustments depending on the foreign country’s existing tariffs on US goods. For the EU, the tariff is fixed at 20 percent, reflecting, according to Trump, the higher duties imposed by Brussels on certain American exports.

This policy, the Trump administration argues, aims to create fairness. Critics, however, view it as another blow to multilateralism and an attempt to unilaterally redefine trade norms. The ripple effects could be devastating for European manufacturers, especially automobile companies in Germany, steel producers in Italy, and machinery exporters in the Netherlands.

Within the EU, some member states are more vulnerable to the tariffs than others. Germany, for instance, sends a significant portion of its high-end cars and industrial products to the US. France is also deeply integrated into the transatlantic pharmaceutical and aeronautics supply chains. Southern European economies, meanwhile, rely on exports of agricultural goods and processed foods that could also become collateral damage.

Despite these disparities, EU officials are emphasizing unity. “Intra-EU cohesion is essential,” said a spokesperson for the European Commission. “We must avoid allowing Washington’s tariffs to divide us. A fragmented response would only weaken our position.”

Brussels is exploring several options. These include imposing its own reciprocal tariffs on US goods, filing a case with the WTO, and reactivating EU-wide investment protection mechanisms. At the same time, European diplomats are working behind the scenes to open channels with US trade representatives in hopes of averting a full-blown trade war.

What’s at stake in the Monday meeting

The Brussels meeting on Monday will bring together the EU’s 27 trade ministers for a closed-door session that could define Europe’s next steps. While some ministers advocate immediate retaliation, others urge caution, hoping that diplomatic engagement might still prevail.

A major question is how the EU can design countermeasures that are both effective and WTO-compliant. The bloc wants to avoid a scenario similar to the one that unfolded during the 2018–2019 trade disputes under the Trump administration, which resulted in retaliatory tariffs on items ranging from American bourbon to Harley-Davidson motorcycles.

Now, with Trump back in office and pursuing an even more aggressive tariff policy, EU leaders find themselves facing a familiar challenge—how to respond with strength while keeping the door open for resolution.

As the EU prepares countermeasures against the new 20 percent US tariff, the stakes are higher than they appear on the surface. Beyond economics, this is a test of Europe’s strategic autonomy, its ability to act in unison, and its readiness to defend the rules-based order.

If the EU handles the crisis effectively, it could reinforce its position as a global trade power. However, a misstep could fracture internal unity, strain relations with Washington further, and expose EU exporters to long-term instability.

For now, all eyes are on Brussels. The decisions made in the coming days could shape the future of transatlantic trade and set a precedent for how the EU manages its economic sovereignty in a world of shifting alliances and emerging protectionism.