The European Union has approved a set of retaliatory tariffs on U.S. goods, valued at €22 billion, in response to recent U.S. trade actions. The decision follows a vote by EU member states on April 9, 2025, with 26 out of the 27 countries supporting the measure. Only Hungary, which has a close alignment with U.S. President Donald Trump, voted against the tariffs.
The tariffs, which will be phased in over three stages throughout the year, include duties of between 10% and 25% on a range of U.S. products, including tobacco, motorcycles, poultry, steel, and aluminum. The first tariffs will go into effect on April 15, with the majority of duties being applied starting May 16. Additional tariffs on certain goods, such as soybeans and nuts, will begin on December 1.
The EU’s move is a direct response to the U.S.’s imposition of a 25% tariff on steel and aluminum imports last month, which the European Commission has characterized as unjustified and damaging to both economies. The Commission emphasized that the EU remains committed to seeking a negotiated solution with the U.S. but is prepared to proceed with the tariffs in the absence of a resolution.
The EU had originally proposed tariffs on a wider range of goods, valued at €26 billion, but some items, such as bourbon, were removed from the list after U.S. threats to impose retaliatory tariffs on European alcoholic products. The EU also continues to consider additional countermeasures in response to further U.S. tariffs, including a 25% levy on automobiles and a 20% tariff on all EU goods, which were enacted by the U.S. earlier this week.
A formal proposal from the European Commission regarding further retaliation is expected by mid-May, unless a negotiated solution is reached with Washington. This decision follows U.S. President Trump’s rejection of an EU proposal to remove tariffs on all industrial goods traded between the two regions.
The U.S. currently imposes tariffs on a significant portion of EU exports, totaling €370 billion, or 70% of the EU’s total exports to the U.S. Tensions between the two trading partners continue to escalate, with both sides engaging in a series of trade-related disputes.
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