EU Warns of ‘Immediate’ Retaliation Against Trump’s Reciprocal Tariffs

The European Commission fired a warning shot against the United States on Friday, vowing to react “immediately” if President Donald Trump implements tariffs that match those of America’s trade partners.

After reinstating this week duties on steel and aluminum, Trump signed a memo Thursday that sets out a process for imposing so-called “reciprocal” tariffs. These would effectively raise tariffs on a country’s exports to the U.S., based on the level of tariffs or non-tariff barriers that country imposes on U.S. goods.

“Unjustified tariffs against the European Union will not be left without a response. We will take proportional and clear countermeasures,” EU chief executive Ursula von der Leyen in her first public reaction to Trump’s announcement.

Speaking during a security conference in Munich, von der Leyen said that trade wars and tariffs don’t pay off for anyone; that they would drive up costs for consumers and businesses; and disrupt transatlantic supply chains.

Trump’s team has taken particular exception to value-added taxes levied on sales of all goods by European countries — complaining that these add around 20 percent to the 10 percent duty the EU charges on auto imports. The U.S. has 2.5 percent tariffs and no federal sales tax.

In an earlier statement, the European Commission said: “The EU will react firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies.”

Since the trade skirmishes of Trump’s first term, the EU has expanded its trade defense arsenal in a way that would enable it to strike back against measures it views as unlawful.

Brussels also recalled its attachment to rules-based trade, accusing Washington of undermining its existing commitments. The U.S. has effectively hamstrung the World Trade Organization, having blocked the appointment of judges to its highest appeals court since Trump’ s first term.

“For decades, the EU has worked with trading partners like the U.S. to reduce tariffs and other trade barriers worldwide, reinforcing this openness through binding commitments in the rules-based trading system — commitments that the US is now undermining,” the Commission said.