EU trade ministers near agreement on first round of retaliatory tariffs against US

Trade ministers meeting in Luxembourg on Monday neared agreement on a list of US goods to target in response to the recent US decision to impose tariffs on steel and aluminium.

But a second round designed to reply to the blanket 20% tariff on other imports from the bloc, and a flat rate of 25% on cars, remains under debate.

The first round of countermeasures, which are expected to be adopted on Wednesday, is likely to include US products such as bourbon whiskey, though this inclusion remains moot, particularly after threats from US President Donald Trump to impose 200% tariffs on European wines and spirits if whiskey remains on the list.

France, Italy, and Spain led calls in the past weeks to remove whiskey from the retaliatory measures to avoid escalating tensions with the US.

“We need to strike the right balance to protect the most exposed EU economies,” an EU diplomat told Euronews, adding: “We are united in our desire for a proportionate response, because retaliatory measures against US products will have a knock-on effect on our industries."

The retaliatory tariffs will be phased in starting April 15, with a second wave set for May 15. The goal of these initial measures is to push the US to the negotiating table, signalling the EU's readiness to stand firm in the ongoing trade dispute.

While the agreement on the first round of tariffs is expected to be finalised in time for Wednesday, a second phase of the EU’s strategy is still under discussion.

This "plan B" would address US tariffs on cars and other sectors, but member states are divided over the best approach. Larger economies like France and Germany have signaled openness to using more aggressive countermeasures, such as blocking US companies from EU public contracts, while smaller states such as Spain, Italy, and Ireland favour a more cautious response.

Despite these divisions, the EU is aiming to maintain a unified stance. Once the first list is approved, the EU hopes it will provide leverage in future negotiations with the US, emphasizing the bloc's readiness to escalate if necessary. However, leaders are keen to avoid a trade war and are determined to strike a balance between standing firm and maintaining diplomatic ties with Washington.