Europe Braces for Trade Clash as Trump Imposes Sweeping Tariffs

Europe leaders remain committed to preserving the transatlantic alliance, but no longer believe the old trade order can be restored. According to EU insiders, the bloc seeks to salvage what it can of the existing economic framework while preparing for long-term divergence.

Trump Unleashes New Tariff Barrage

Earlier this week, former President Donald Trump announced a new 20% tariff on European imports as part of a sweeping overhaul of U.S. trade policy. This follows a series of previous duties on steel, aluminum, and auto parts. The move is widely viewed as a deliberate attempt to dismantle the current global trade system.

EU Eyes Proportional Response

While the EU favors dialogue, it is also preparing proportional countermeasures. Officials are weighing options that include retaliatory tariffs, taxes on U.S. digital services, and targeted actions against American tech firms. Service sectors are under particular scrutiny, given their vulnerability and size.

Commission Drafts Concessions Strategy

EU Commissioner Maroš Šefčovič is exploring tactical concessions to avoid a full-blown trade war. Options include lowering some EU tariffs, launching joint investment initiatives, and easing certain regulatory barriers. A “term sheet” is reportedly in development to guide negotiations.

Rubio Reassures Allies U.S. Commitment to NATO Remains Strong

Secretary of State Marco Rubio reassured European allies that the U.S. under Donald Trump’s administration will remain committed to NATO….

Digital and Fiscal Rules Off Limits

Despite exploring flexibility in other areas, the EU is drawing a hard line on digital and fiscal regulations. Officials stress that these policies are fair and non-discriminatory, and they reject Washington’s claim that they constitute trade barriers.

Ministers to Meet for Unified Action

EU trade ministers will meet Monday to shape a cohesive response. The combined impact of U.S. tariffs and EU countermeasures could affect up to €350 billion in exports. The bloc’s Anti-Coercion Instrument is on the table, though considered a last resort due to its disruptive potential.

High Stakes and Rising Tensions

French Finance Minister Eric Lombard emphasized that the EU’s response aims to do more than match tariffs—it seeks to restore balance and bring the U.S. back to the negotiating table. Potential measures include revisiting data-sharing agreements and introducing new digital taxes.

Uncertain Path Ahead

Despite the EU’s readiness to act, the Trump administration has yet to clarify its ultimate goals. Internal divisions remain within the bloc regarding which concessions are acceptable, particularly around food imports and business regulations. “There appears to be no method in this madness,” warned Commission President Ursula von der Leyen.