Bloc targets politically sensitive exports including soya beans, yachts and poultry; Hungary only member to oppose
The European Union has voted to approve a sweeping package of retaliatory tariffs worth nearly €21 billion on U.S. imports, escalating trade tensions with President Donald Trump’s administration in response to his steel and aluminium duties.
The first wave of 25% tariffs will take effect from 15 April, targeting a range of goods from farm produce to consumer goods and industrial materials. A second tranche will follow on 15 May, with the final round scheduled for December. The European Commission, which leads the bloc’s trade policy, said the countermeasures were “proportionate and reversible”—but stressed they would remain in place unless the U.S. agreed to a “fair and balanced negotiated outcome”.
All 27 EU member states voted on the proposal, with only Hungary dissenting. Hungary’s Foreign Minister Péter Szijjártó criticised the move as damaging to European consumers, writing on social media: “The only way forward is negotiations, not retaliation.”
Politically calibrated targeting
The EU’s retaliatory list is designed to hit politically sensitive U.S. exports, particularly from Republican-leaning states. A leaked draft list indicates that duties will be levied on goods including:
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Soya beans from Louisiana
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Beef from Kansas and Nebraska
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Cigarettes from Florida
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Wood products from Georgia and Alabama
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Poultry, orange juice, yachts, motorcycles, and tobacco
Though the Commission has not yet published the final product list, officials confirmed that it had been shaped to exert maximum strategic pressure while minimising disruption within the EU. Bourbon whiskey, initially targeted in earlier drafts, was removed after lobbying from France, Italy, and Ireland, who feared retaliatory tariffs on European wine and spirits.
Steel, cars, and reciprocal tariffs
The EU’s retaliation comes in response to Trump’s 25% duties on European steel and aluminium, imposed in March. However, it also marks the first formal response to his sweeping “reciprocal tariffs” policy, which placed a blanket 20% duty on virtually all EU exports from 2 April—affecting roughly 70% of the bloc’s exports to the U.S., valued at €382 billion annually.
The European Commission said it is preparing a second package of countermeasures to address U.S. tariffs on cars and pharmaceuticals, as well as the broader 20% levy. Those proposals are expected as early as next week.
Trade Commissioner Maroš Šefčovič estimated that the tariffs now in place impact €380 billion worth of EU exports to the U.S., a figure that dwarfs the roughly €26 billion in European goods targeted by Washington’s initial steel and aluminium measures. “That’s over €80 billion in duties,” Šefčovič noted—an eleven-fold increase over the €7 billion the U.S. previously collected from EU goods.
Brussels seeks negotiations but prepares escalation
Despite the forceful response, EU leaders continue to emphasise dialogue over escalation. “The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy,” the Commission said in a statement. President Ursula von der Leyen has revived a standing offer for a “zero-for-zero” industrial tariff deal with Washington, originally proposed in 2018 and rejected again this week.
French Trade Minister Laurent Saint-Martin echoed the EU’s preference for talks: “We believe that a tariff war is harmful for everyone… we must continue the work of dialogue and negotiation with the U.S. administration.”
Still, the bloc is quietly preparing a broader arsenal. The Commission is weighing use of its anti-coercion instrument (ACI), which allows for non-tariff measures such as blocking exports of hard-to-replace goods or restricting U.S. firms’ access to the European market. No formal ACI investigation has yet been launched.
Market impact and political backdrop
European stock markets fell sharply on Wednesday, with indices in London, Paris, and Frankfurt closing more than 3% lower. Over the past week, the benchmark STOXX 600 has dropped over 10%, entering correction territory amid fears of a global recession triggered by trade disputes.
Trump, meanwhile, briefly paused tariffs above 10% for most countries late Wednesday, though the 125% rate on Chinese imports remains in force. China responded by raising its own duties on U.S. goods to 84% from 34%, further destabilising global markets.
U.S. soybean farmers, who rely heavily on exports to both China and the EU, have warned that continued tariff escalation could devastate their industry. Nearly all U.S. soybean exports to Europe originate from Louisiana—the home state of Republican House Speaker Mike Johnson. Johnson has endorsed the tariff strategy, saying it may be “rocky in the beginning, but in the end it will help all Americans.”
