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Several issues appeared this spring with the US intentions to impose additional tariffs on imported goods from tens of countries around the world, including the EU-27. These tariffs were called coercion: i.e. the economic coercion occurs in situations where a third country attempts to pressure the EU and/or Union’s member states into making a particular choice by applying, or threatening to apply, measures affecting trade or investment. Hence, the EU started the process of “anti-coercion” measures.
The EU was already envisaging the looming trade war: the Commission has announced new measures to support the steel and cars sectors beforehand: thus, at the end of March, the EU has limited the amount of steel that can be imported to Europe tariff-free, which will give more breathing space to these strategic industries. The Commission President added that “now we would also convene Strategic Dialogues with the steel, the automotive and the pharmaceutical sectors”.
Source: https://ec.europa.eu/commission/presscorner/detail/da/statement_25_964
According to the European Policy Centre, the EU “should have no illusion: the US President is out to punish the EU and the most likely path leads towards further escalation”.
Reference to: https://www.epc.eu/en/Publications/Liberation-day~63d0bc
The US moves
The Trump Administration’s idea was to “declare a national emergency” by imposing a 10 percent tariff on imports from all countries. Aside from that, Mr. Trump imposed individualized additional tariffs on approximately 60 countries which he believes are the worst trade offenders. Trump’s “Liberation Day” announcement in the beginning of April 2025, puts the EU-27 bloc in the “trade war” along with other major economies like China, Japan, Taiwan and Korea.
The tariff’s move throws up US trade barriers that haven’t been this high since the Great Depression of the 1930s.
A White House official said the 10 percent tariff would take effect early the morning of April 5 and the additional tariff on the worst offenders on April 9. The Trump administration estimates the tariffs charged by the European Union to the United States at 39 percent, and cuts this figure by half to come up with the 20 percent, in what Trump labeled “kind reciprocal” tariffs.
The Trump administration took particular offense at what it views as the EU’s non-tariff-barriers, such as value-added tax and its tech regulations. It factored these into its calculations — although the Europeans flatly reject its view that either discriminate against the US businesses. In fact, over 70 percent of imports to the EU are duty-free. And, on a trade-weighted basis, EU tariffs average just 2.7 percent, according to the World Trade Organization.
However, the new “reciprocal” tariffs will not be stacked on top of the sectoral tariffs that Trump has already announced for autos, steel and aluminum; some are expected for lumber, copper, pharmaceuticals, semiconductors and potentially critical minerals, the White House officials said.
Reference and citation: https://www.politico.eu/article/donald-trump-europe-trade-tariffs-imports-liberation-day/?utm_source=email&utm_medium=alert&utm_campaign=Trump%20hits%20Europe%20with%2020%20percent%20tariffs