WATCH THE VIDEO HERE The European Union is gearing up to impose counter-tariffs on U.S. goods worth up to €26 billion ($28.4 billion) in response to President Donald Trump’s newly announced universal tariffs, which European Commission President Ursula von der Leyen described as a “major blow to the world economy.” Von der Leyen confirmed that the EU is finalizing an initial package of retaliatory tariffs, set to take effect by mid-April, targeting U.S. steel and aluminium imports. The move comes after the U.S. imposed steel and aluminium tariffs on March 12, followed by Trump’s broader 10% minimum tariff on most imports, with a steeper 20% rate for the EU, announced on Wednesday. Speaking on Thursday in Samarkand, Uzbekistan, ahead of an EU-Central Asia summit, von der Leyen warned of “further countermeasures” if negotiations with Washington fail. According to Reuters, a French government spokesperson hinted that additional measures, possibly targeting U.S. digital services and other sectors, could follow by late April. The EU’s ability to match U.S. tariffs is constrained by trade imbalances. The EU exports to the U.S. in 2024 stood at €532 billion ($582 billion), while the U.S. exports to the EU stood at €334 billion ($365 billion) Additionally, the EU is hesitant to target U.S. oil, gas, and pharmaceuticals, which make up nearly 35% of its imports from America. Meanwhile, a former EU trade negotiator and Bruegel think-tank fellow, Ignacio Garcia Bercero, has urged smarter, targeted retaliation—such as limiting U.S. firms’ access to EU public contracts—rather than broad tariffs. He also criticized Trump’s inclusion of EU tax policies in tariff calculations as “economic coercion.” The European Central Bank (ECB) estimates that a 25% U.S. tariff on EU goods could shave 0.3% off eurozone growth in the first year, worsening to 0.5% if the EU retaliates. “It is not too late to address concerns through negotiations,” she said, leaving the door open for a diplomatic resolution. Nigeria is also at the receiving end of the Trump’s sweeping tariff policies a baseline 10% tariff on all U.S. imports, alongside sharper, country-specific reciprocal tariffs aimed at nations that impose steeper duties on American goods. While Nigeria is not among the highest tariff imposers, the adjustment signals that the U.S. is casting a wide net that includes not just economic rivals but also developing nations with whom it previously maintained preferential trade terms.
EU prepares retaliatory tariffs as Trump’s trade policies spark global economic concerns
