The European Union is preparing to respond to recent US tariffs with a significant package of countermeasures. Starting in mid-April, the EU plans to impose tariffs worth up to €26 billion on various US goods. This decision comes after the US announced a 25% tariff on EU steel and aluminum exports in March. The EU had delayed its response in hopes of finding a negotiated solution, but now it appears ready to take action.
The upcoming tariffs will affect a wide range of products, including agricultural, food, and textile goods. Additionally, discussions are in progress for an even larger set of countermeasures that could be implemented by the end of April. European Commission President Ursula von der Leyen emphasized that Europe has many options at its disposal.
While the US has raised concerns about its trade deficit with the EU, the situation is more balanced when it comes to services. The US has a €109 billion trade surplus in services with the EU, according to EU officials. This gives the EU leverage, as it could target US digital services or limit American companies’ access to public contracts.
One tool the EU could use is the Anti-Coercion Instrument, often referred to as the "big bazooka." This would require majority support from EU member states but could be a powerful measure if European businesses face threats from US tariffs.
Experts warn that the US tariffs could harm smaller companies that rely on exports to the US. Peter Dige Thagesen, a geopolitical analyst, noted that the situation has created significant uncertainty in global trade. He stressed the importance of continuing negotiations to avoid escalating into a full-blown trade war.
While many European leaders have condemned the US tariffs, Hungary’s Foreign Minister Peter Szijjarto criticized the EU’s handling of the situation. He accused EU leaders of incompetence and suggested they are overly influenced by a fear of Trump.
Norway, although not an EU member, is also feeling the impact. Prime Minister Jonas Gahr Store expressed concern that the US tariffs would negatively affect Norwegian businesses and jobs. Finance Minister Jens Stoltenberg warned that Norway could face a "triple squeeze" from US tariffs, reduced growth, and EU countermeasures.
As tensions rise, the potential for a trade war looms, with the possibility of widespread consequences for many companies on both sides of the Atlantic.