EU to Slap US Goods With €21 Billion in Tariffs Amid Escalating Trade Fight

The European Union on Wednesday announced it will impose retaliatory tariffs worth nearly €21 billion on U.S. goods, following President Donald Trump’s sweeping trade measures targeting European exports.

The European Commission confirmed that 26 of the 27 EU countries backed the tariffs, aimed at a broad range of American products, including soybeans, motorcycles, and orange juice. Only Hungary opposed the move.

The EU said in a statement: “The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the U.S., which would be balanced and mutually beneficial.”

Tariffs to Roll Out in Three Stages

The EU’s countermeasures will be rolled out in three phases. The first wave, covering €3.9 billion in trade, will go into effect next week. The second round worth €13.5 billion will follow in mid-May, and the final tranche of €3.5 billion is planned for December.

The tariffs are a direct response to Trump’s decision to impose duties on foreign steel and aluminum. However, the EU’s new measures do not yet cover Trump’s latest round of tariffs, including a 20% levy on all EU exports and a new 25% duty on European car imports, both of which came into effect Wednesday.

Further EU countermeasures targeting those newer U.S. tariffs are already under discussion and could be introduced “as early as next week,” according to EU trade spokesperson Olof Gill.

Hungary Opposes, Urges Dialogue

Hungary was the only EU country to vote against the package. Foreign and Trade Minister Péter Szijjártó posted on X (formerly Twitter): “Escalation is not the answer. Such measures would cause further damage to European economy and citizens by raising prices. The only way forward is negotiations, not retaliation.”

Despite Hungary’s resistance, the support of the remaining 26 member states ensured the package passed with ease. Fourteen countries would have had to vote against it to block the move, an outcome that diplomats said was highly unlikely given recent displays of EU unity.

Trump Targets EU Over Trade Surplus

President Trump has repeatedly insisted the EU must reduce its trade surplus with the United States, even demanding that European countries purchase unrealistic amounts of U.S. natural gas or relax car safety standards.

While Europe exports more goods to the U.S., American services exports to Europe create a counterbalance. The total trade relationship, worth €1.3 trillion, is skewed by only about €50 billion.

In a possible sign of de-escalation, European Commission President Ursula von der Leyen recently revived the idea of a mutual “zero-for-zero” deal to scrap all industrial tariffs, suggesting room for negotiation remains — even as tensions rise.

What’s Next?

With the EU preparing additional retaliatory steps and the U.S. hinting at more tariffs — including on pharmaceuticals — the trade conflict between two of the world’s largest economies appears far from over. For now, Brussels is sending a clear message: it’s ready to hit back, but still prefers the path of dialogue.