The EU member states are set to vote on countermeasures Wednesday.
The European Union has planned countermeasures in response to the 20% additional tariffs placed on the EU last week by U.S. President Donald Trump.
According to initial reporting by Reuters and other outlets, the EU Commission is proposing 25% tariffs on select U.S. imports. The tariffs would be on about $28 billion in US imports.
The member states are set to vote on the proposal on April 9 with the final list of tariffs adopted on April 15, at which time they would take effect for some of the goods. The rest would be imposed one month later on May 15, said EU Trade Commissioner Maros Sefcovic in a press conference Monday.
In the meantime, the EU is open to negotiating with the U.S. EU Commissioner Ursula von der Leyen had proposed a zero-for-zero plan, meaning the EU would eliminate tariffs on the U.S. for autos and industrial goods if the U.S. did the same.
Trump rejected the offer at a press conference Monday, saying it was not good enough.
“The European Union has been very bad to us,” Trump said, reported Newsweek. “They don’t take our cars, like Japan in that sense. They don’t take our agricultural product(s). They don’t take anything, practically. And yet they send millions of cars in a year.”
Sefcovic said the EU continues to negotiate with the US, but added that the trade situation with the U.S. is “in a tough spot.”
€80 billion impact of tariffs
Sefcovic said some €380 billion worth of EU exports to the US, or roughly 70% of its total exports, are facing tariffs of 20% to 25%, or higher in some cases. That amounts to more than €80 billion in duties, up from the €7 billion the US currently gets from the EU.
“From day one, my focus has been on initiating meaningful negotiations with the US Administration, building momentum at every step,” Sefcovic said at the press conference. “And I appreciate the efforts of my counterparts, Secretary of Commerce Lutnick and USTR, Ambassador Greer, for maintaining an open and candid line of communication with us.”
Sefcovic said talks with the U.S. are in the early stages, adding that negotiations will take time.
“Right now, we are in the early stages of discussions because the US views tariffs not as a tactical step but as a corrective measure. We are fully prepared to sit at the negotiation table whenever our American partners are ready,” he said.
While the EU “strongly prefers” negotiation with the US, said Sefcovic, it will not “wait endlessly.” It is preparing contingencies on three tracks – countermeasures, diversifying trade through new agreements, and deterring harmful trade diversions.
The countermeasures, as mentioned, reportedly include 25% tariffs on some US imports. The Reuters story said some of the products include diamonds, eggs, dental floss, sausages and poultry. Bourbon, wine and dairy were not on the list, which should be a relief for the alcohol industry. Previously, the EU had suggested a 50% tariff on bourbon.
The Reuters story said the tariffs would go into effect May 15 and December 1, citing the document itself. But Sefcovic suggested some would kick in on April 15. More details should emerge in the coming days after the EU members states vote.
In talks with China and other partners
On new agreements, Sefcovic said is it “in our interest to strengthen our trade and investment ties with partners around the globe, like India, Indonesia, Thailand, the Philippines or in the Gulf region.”
He added that talks with various trade partners, including China, are active. His recent talks with China focused on “fostering cooperation to rebalance our trade and investment relationship.”
Among the issues covered were market access barriers for European products and the need to level the playing field for EU companies in China.
“Finally, let’s not forget that while the US has decided to step back from parts of the global trading system, that system is still crucial for the EU and the rest of the world,” Sefcovic said. “The US makes up 13 percent of global goods trade. Our priority, along with the rest of the WTO, is to protect the remaining 87 percent and make sure that the global trade system prevails for the rest of us.”
