EU holds off retaliation against Trump tariffs ahead of NATO Summit

EU officials prioritize securing a deal with Trump on Europe’s security before escalating trade tensions with the US.

NATO Secretary General Mark Rutte speaks to reporters outside the White House in Washington, DC, on April 24, 2025. Photo by Al Drago/Bloomberg

By Clarisa Sendy and Alana Salsabila

As the NATO Summit in June looms, EU capitals are advising Brussels to hold off on any significant retaliation against the tariffs imposed by US President Donald Trump. With Europe’s security concerns at the forefront, European diplomats are urging a strategic delay in any major decisions concerning trade, defence investments, and public diplomacy with the US until after the NATO gathering in The Hague on June 24-25.

This cautious approach reflects the delicate balance Europe must strike in its ongoing discussions with the US on defence spending and responsibilities, particularly as Trump’s demands for increased European military contributions to NATO remain a key issue. The focus, for now, is securing a deal on Europe’s medium-term security, sidelining trade disputes for the time being.

EU diplomats advocate strategic pause on trade retaliation

Diplomats within the EU have been actively pushing for a pause on any retaliation against the US ahead of the upcoming NATO Summit. Several European capitals argue that an agreement with Trump on the continent’s security should take precedence over immediate trade concerns, including the potential retaliation against the US for the tariffs Trump has imposed.

With tensions still high over Trump’s demands that European allies commit to spending 5 per cent of their GDP on defence, many EU officials believe that resolving security issues with the US president is paramount. This strategic pause includes delays in defence procurement decisions and avoiding public discussions about trade retaliation, which could escalate tensions ahead of the NATO meeting.

Trump’s tariffs and EU concerns over defence responsibility

Trump’s controversial tariffs on European steel, aluminium, and cars, along with a blanket 10 per cent tariff on EU imports, have stoked significant concern across the continent. However, the EU has been given a temporary reprieve, with Trump pausing the planned doubling of tariffs to 20 per cent until early July, contingent upon the outcome of ongoing negotiations with the EU.

Despite this temporary pause, European officials have made it clear that if discussions on a balanced trade deal with the US collapse, they will have no choice but to retaliate with their own measures. The diplomatic strategy for now, however, is to prevent further escalation and keep the focus on resolving security issues at the NATO Summit.

NATO Summit planning amidst US pressure on defence spending

As NATO prepares for its crucial summit next month, there is growing concern over what Trump could demand from the European members. US officials have made it clear that Trump plans to attend the summit, but his participation may depend on whether NATO’s other members agree to increase their defence contributions and take on more responsibility for the continent’s security.

The alliance is currently conducting a comprehensive review of its members’ defence capabilities, with the goal of reducing Europe’s reliance on the US and outlining how European militaries can scale up to take on more of the defence burden. While European officials estimate that a gradual transition over a five-to-ten-year period is feasible, the process is far from straightforward.

Risk of confrontation with Trump during the summit

European leaders, still shaken by the dramatic events of the 2018 NATO Summit, are hoping to avoid a repeat of the chaos that ensued when Trump threatened to withdraw the US from the alliance. That summit saw a scramble to appease Trump, culminating in promises to increase defence spending and address his concerns about Europe’s defence responsibilities.

Given these concerns, many European officials are urging NATO officials, including the summit’s host, NATO Secretary-General Mark Rutte, to scale back the planned discussions and limit the number of confrontations with Trump. Rutte is under pressure from allied capitals to avoid any issues that might provoke the US president and disrupt the summit’s primary focus on defence spending.

Europe’s evolving stance on defence and security

Despite Trump’s focus on financial contributions, many European leaders have recognized the broader strategic importance of the NATO alliance in shaping Europe’s future security landscape. Poland’s Foreign Minister, Radek Sikorski, has warned that the US might begin to shift its focus away from Europe, acknowledging that a path toward greater European independence in defence is achievable.

While the EU's top priority remains addressing the US’s demands on defence spending, there are growing fears about the long-term implications of Trump’s tariff policies and his unpredictable stance on foreign policy. As EU officials weigh their options, the decisions made in the coming weeks will likely shape the future of both European security and trade relations with the US.

Limited scope for policy discussions at the NATO Summit

The upcoming NATO Summit was initially expected to be a high-profile event for Rutte, marking his first summit as NATO Secretary-General and the first held in his home country. However, in an effort to avoid any potential clashes with Trump, the summit has been reduced to two days, and the number of policy discussions between leaders will be kept to a minimum.

The EU’s focus on defence spending is expected to dominate the agenda, while other important issues such as Ukraine’s bid for membership, relations with Asian partner countries, and climate change are likely to take a backseat. For many European leaders, securing a positive outcome on defence spending remains the overriding priority.

The long-term challenges for Europe’s relationship with the US

As the EU prepares for the NATO Summit, the challenge of balancing Europe’s security needs with its trade concerns remains pressing. While Europe has made strides in enhancing its military capabilities, the continent’s reliance on the US for defence remains a key issue. Trump’s tariffs and his demands for increased European defence spending will undoubtedly shape the discussions in The Hague next month.

In the meantime, EU capitals are hoping to avoid any further confrontation with the US and are focused on finding a solution that ensures a stable and secure future for Europe. However, the uncertain nature of Trump’s leadership and his unpredictable approach to foreign policy leaves many questions unanswered.

Ultimately, the outcomes of the NATO Summit in June will play a crucial role in determining the trajectory of transatlantic relations, the future of European defence, and the long-term stability of the continent.