The European Union had expected a transactional approach from the United States under President Donald Trump, but instead, it got something else – a series of punitive tariffs that are poised to hit $28 billion in exports. The retaliatory measures, which include tariffs as high as 50% on Harley Davidson motorcycles and Kentucky bourbon, aim to counter what EU officials see as unfair trade practices by the US.
President Trump has repeatedly criticized the EU for its trading practices, claiming that it was created to “screw” America. However, the bloc’s average tariff rate is only slightly higher than that of the US, with cars facing tariffs at 10%. The US administration’s approach to trade has been unpredictable and aggressive, leading some experts to describe it as a non-reciprocal approach.
EU officials have tried to negotiate with the US, but so far, they have made little progress. The bloc is now preparing for an all-out trade war, even if it hoped to avoid one. European leaders have threatened to use new anti-coercion tools, such as tariffs on technology firms like Google, in extreme circumstances.
The retaliatory measures are expected to hit products that are important in Republican strongholds, including bourbon from Kentucky and soybeans from Louisiana. The spirits industry has already voiced alarm over the 50% tariff on whiskey, which is set to exacerbate a slowdown in growth.
The US administration’s willingness to accept some economic pain in exchange for its long-term trade goals raises concerns about the future of global trade. EU officials see a world where President Trump is bent on reorganizing the rules of global trade as more treacherous and are worried about permanently undermining their most important trading relationship with the US.
As tensions continue to escalate, European leaders are urging restraint from both sides. The conflict risks damaging the close alliance between the US and Europe and permanently undermining their economic integration.
Source: https://www.nytimes.com/2025/03/13/world/europe/trump-europe-tariffs-retaliation.html