The European Commission hit pause on its plan to roll out a first batch of counter-tariffs against the United States on Thursday, but warned the duties on more than €20 billion ($22 billion) in US exports would kick in if negotiations with Washington were “not satisfactory.”
The EU’s U-turn came after US President Donald Trump paused additional US tariffs for 90 days and shifted most down to the 10% minimum tariff late on Wednesday.
“We want to give negotiations a chance,” European Commission President Ursula von der Leyen wrote on X as she announced the EU’s own 90-day suspension.
Europe is still weighing up how much muscle to wield in its broader retaliation, with the bloc having long stressed it preferred negotiations over escalation.
From soybeans to steel
The EU’s planned countertariffs — now on hold — were brewed up in response to US steel and aluminium duties on the EU which remain in place, and predate Trump’s bigger order on so-called reciprocal tariffs.
EU diplomats told DW on Wednesday that the first batch of EU countertariffs of up to 25% were set to target US steel and aluminium, and a series of food products including poultry, nuts and soybeans.
With an apparent focus on hitting the heartlands of Trump’s Republican party, the bloc’s list of planned tariffs also includes a host of other items from motorcycles to jeans, with the aim of making the goods more expensive and less attractive for European buyers.
“The lion’s share of the list consists of products that are easy for consumers and businesses to replace,” Sweden’s Trade Minister Benjamin Dousa said in a statement on Wednesday after the measures were initially agreed.
The first round of tariffs were due to enter into force next week, while duties on soybeans and almonds — which would deal a bigger blow to US producers — were slated to kicked in late in the year.
The pause now gives Brussels breathing space as it seeks to negotiate a deal with Washington to avoid a full-blown trade war.
Deal or no deal?
EU Trade Commissioner Maros Sefcovic has been on and off planes and phone calls to Washington for weeks trying in vain to secure a deal to avert tariffs. After Brussels went public with its offer to scrap all duties on cars and industrial goods earlier this week, Trump was quick to turn it down.
But after the US president watered down his across-the-board tariff plans, which would impact hundreds of billions of euros in EU exports, Europe is doubling down on efforts to find an accord.
Cinzia Alcidi, an analyst with the Centre for European Policy Studies, warned that the “crude” way US tariffs were calculated suggests the Trump administration has “no real interest in any meaningful give-and-take.”
Alcidi suspects only more US domestic pressure will put the US president in more of a deal-making mindset. “Tariffs, which are fundamentally a tax on domestic consumers, will lead to higher prices. Businesses, especially those reliant on imported components, will also struggle,” she wrote on Tuesday.
“If inflation climbs and public dissatisfaction grows, Trump’s approval ratings may dip, and unease within Congress may grow louder.”
US tech, services next in line?
But much of the pain linked to US tariffs will also be felt in Europe, says Niclas Poitiers, who warns businesses and voters are growing “nervous.”
“I think there’s a balance to be struck between the necessity to react strongly and the need to show that one is problem-oriented and one doesn’t want to escalate,” the research fellow at Brussels-based think tank Bruegel told DW.
As Europe mulls longer-term retaliation options, US services exports, including those of Big Tech platforms or consulting firms, could move in the EU’s focus down the line.
Sometimes referred to as Brussels “nuclear option” on trade, the EU’s so-called Anti-Coercion Instrument (ACI) “allows [the EU] to do many more things than the normal trade war would allow you to do,” said Poitiers.
The ACI — created in 2023 in response to China’s suspected block on Lithuanian imports over its support for Taiwan — would allow the EU to impose restrictions on US banks, curb revenue access for streaming platforms like Netflix, or even revoking US patents.
But an EU diplomat told DW there’s “no appetite to pull that trigger for now,” adding that any talk of targeting tech remains “in the realm of speculation.”
China tariffs stoke fears in Europe
A more pressing fear for the EU is a possible influx of cheap goods from China and other Asian countries as they are looking to new markets outside the US.
EU Commission President Ursula von der Leyen discussed the problem on the phone with Chinese Premier Li Qiang on Tuesday.
According to a summary published by Brussels, they talked about a “mechanism for tracking possible trade diversion and ensuring any developments are duly addressed.”
Edited by: Uwe Hessler
This article was first published on April 9 and updated for latest developments regarding EU tariffs on April 10.
