By Josephine Amuzu
The European Union has vowed to respond “firmly and immediately” to any tariff increases resulting from U.S. President Donald Trump’s proposed “reciprocal” trade policy, which it criticized as unjustified and counterproductive.
Trump has instructed his economic team to develop tariffs targeting countries that impose tariffs on U.S. imports or subject American businesses to value-added or digital services taxes. His list of potential targets includes China, Japan, South Korea, and the European Union.
In response, the Commission stated that the EU maintains “some of the lowest tariffs in the world” and sees no valid reason for the U.S. to raise tariffs on European exports. It highlighted that over “70% of imports enter the bloc tariff-free.”
The EU executive emphasized that it would push back against any “unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies.”
European nations argue that value-added taxes on imports, while typically higher than in the U.S., do not equate to tariffs since they also apply to domestic goods.
A White House fact sheet on Thursday underscored disparities such as the EU’s 10% tariff on car imports compared to the U.S. duty of 2.5%, as well as restrictions on U.S. shellfish exports. It also criticized the EU’s use of value-added taxes, calling them “discriminatory and extraterritorial.” Additionally, it pointed to regulatory measures and digital services taxes on U.S. firms, such as France’s 3% tax on digital platform revenues, affecting companies like Google, Meta, and Amazon.
France’s Finance Minister, Eric Lombard, dismissed the criticism, stating that the tax “would not be changed because of tariff threats.”
Senior EU lawmaker Bernd Lange, chair of the European Parliament’s trade committee, acknowledged that while the EU is open to negotiations on tariffs, it “would not give up its right to regulate.”
While the European Commission declined to discuss the extent of future negotiations, it confirmed that communication with the U.S. administration would “ramp up in the coming weeks.”
Commission President Ursula von der Leyen reiterated that any “unjustified tariffs” would be met with “proportionate and decisive countermeasures.” She echoed her earlier statement promising a “firm and proportionate” response to Trump’s decision to impose tariffs on all steel and aluminum imports.
EU trade ministers took a more diplomatic approach, prioritizing negotiations over immediate retaliation, particularly since the U.S. steel and aluminum tariffs are set to take effect on March 12.
“There is a window for negotiation,” Irish Foreign Minister Simon Harris said.
Trump’s memorandum on Thursday left the decision on new tariffs pending reports due by April 1, which will assess the U.S. trade deficit and trading partners’ practices.
Three EU diplomats agreed that negotiations should be pursued while also preparing a strong countermeasure if U.S. tariffs are enforced.
“Our response will be on the one hand calm and on the other maintaining unity,” one diplomat stated. “The EU will not come with an offering on a tray and only then start negotiating. We are equal partners.”
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