Confronted with Trump's 20% tariff on EU goods, the EU trade ministers met in Luxembourg on the 7th to discuss countermeasures. The European Commission proposed that both sides exempt industrial products from tariffs. However, Trump believed that the EU's "zero-for-zero" tariff proposal was "not enough," demanding that the EU reduce its trade deficit before he would agree to a deal.

On April 7, Ursula von der Leyen, President of the European Commission, stated that the EU is willing to exempt industrial products from tariffs with the United States. She said that the EU had already proposed a zero-tariff plan. Over the weekend, Elon Musk, an advisor to Trump and a billionaire, also suggested mutual tariff exemption between Europe and America.

In response to von der Leyen's proposal, Trump commented on Monday that unless the EU takes action to purchase American goods, the industrial product tariff exemption proposal "won't work," and advocated that this proposal is "not sufficient" to cancel the 20% import tariff.

Trump criticized the EU for being "very bad" towards the U.S., saying, "They don't accept our cars, just like Japan; they don't accept our agricultural products," and added that if European countries buy $350 billion worth of energy from the U.S., the trade deficit will quickly disappear.

Currently, steel and aluminum products exported by the EU to the U.S., as well as automobiles, face a 25% tariff, while other goods are subject to a 20% "reciprocal tariff." The EU had initially announced possible countermeasures. However, at the meeting of EU trade ministers on April 7, the representatives sent out signals of easing tensions.

Wopke Hoekstra, the Dutch Minister for Foreign Trade, told the media that it was necessary to "stay calm" and "respond in a way that eases tensions." She pointed out that the global stock market crash already foretells the consequences of escalating tensions, adding, "But if necessary, we are still ready to take countermeasures to bring the U.S. back to the negotiating table."

Vice-President of the European Commission Maroš Šefčovič held a two-hour "frank exchange" with the U.S. side on April 4, criticizing the U.S. for imposing tariffs that were "destructive and unjust."

According to the original plan, the EU intended to introduce countermeasures against steel and aluminum tariffs this week, imposing tariffs on $28 billion worth of U.S. goods. However, Trump has threatened that if Brussels imposes a 50% tariff on U.S. bourbon whiskey, he will impose a 200% retaliatory tariff on EU alcoholic beverages. Therefore, France, Italy, and other wine-producing member states have expressed concerns about the EU's plans.

In addition, the EU is considering introducing comprehensive countermeasures in late April to retaliate against Trump's car tariffs and "reciprocal tariffs." However, according to bilateral trade statistics in 2024, the total U.S. exports to the EU amounted to 334 billion euros, while EU exports to the U.S. totaled 532 billion euros, which could result in the EU suffering more severe losses than the U.S. in the tariff war.

The EU must remain united

French State Secretary for Foreign Trade Martin said that there should be no taboos in responding to U.S. tariffs. He suggested considering the "very comprehensive and radical" EU anti-coercion tool (ACI) to restrict U.S. companies' participation in public tenders within the EU. "We cannot rule out any options regarding goods or services."

Ireland's Foreign Minister Harris warned that the EU's anti-coercion tool is akin to a "nuclear weapon," and at least for now, most Europeans do not want to use it.

German Acting Vice-Chancellor and Economy Minister Robert Habeck called on member states to remain united, stating, "The stock market is already collapsing, and losses may continue to expand." He believed that the U.S. is actually very weak, as evidenced by Musk's suggestion over the weekend for zero tariffs between the EU and the U.S. "However, if various EU member states keep talking about wine one moment, then bourbon the next, and pistachios later, we will ultimately achieve nothing."

Source: DW integrated reports from Deutsche Presse-Agentur, Agence France-Presse, and Reuters

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