EU’s Strategic Patience Faces Trump’s Tariff Pressure

April 2025 — The European Union has opted for restraint in response to former U.S. President Donald Trump’s latest round of tariffs on steel, aluminum, and automobiles. While Trump imposed a 20% duty on all EU goods—later reduced to 10%—Brussels suspended its planned countermeasures totaling €20.9 billion before they could take effect.

European Commission President Ursula von der Leyen emphasized a preference for dialogue over immediate retaliation. “We want to give negotiations a chance,” she posted, while affirming that countermeasures remain on the table should talks stall.

A Calculated EU Strategy

Unlike Washington’s rapid policy shifts, the EU’s reaction is methodical, legally grounded, and shaped by consensus among member states. Under EU law, major trade decisions require backing from at least 15 of the 27 member countries—a mechanism that slows but legitimizes responses.

David Kleimann, a trade analyst at the ODI think tank, stated, “The EU’s long-game approach, rooted in preparation and unity, is serving it well. Market turmoil is already undermining Trump’s tariffs more than immediate retaliation could.”

Retaliation Tools and Political Calculations

Despite the pause, the EU has developed the Anti-Coercion Instrument (ACI)—a legal framework allowing for powerful retaliatory measures. However, activating the ACI would take at least six months and additional approvals, making it more of a deterrent than a quick strike tool.

The EU’s counter-tariff list was designed for maximum political impact. While soybeans from Republican-stronghold Louisiana were targeted, products like Kentucky bourbon—originally on the list—were spared due to pressure from France and others. This ensures political unity within the bloc while targeting Trump’s support base.

Multilateralism Over Chaos

While Trump seeks to dismantle the multilateral trading order, the EU continues to champion the rules-based system founded post-WWII. “Any EU offer must comply with WTO standards,” said former EU trade negotiator Ignacio García Bercero. With the U.S. having paralyzed parts of the WTO, Brussels is treading carefully to uphold its credibility.

The suspension of EU countermeasures is not an end but a pause. “Let’s talk, seriously this time,” warned an EU diplomat. Should negotiations fail, retaliation remains not just possible—but ready.

Sources: News Agencies