EU Prepares Swift Retaliation to Trump’s Tariffs with £22 Billion Response

The European Union is preparing to hit back at new tariffs imposed by Donald Trump with a targeted package of countermeasures worth up to 28 billion US dollars, or approximately 22.2 billion pounds sterling. The measures are being drafted as a collective response by the 27 EU member states, who aim to show a united front against what they consider unfair trade restrictions introduced by the United States.

Sources familiar with the discussions confirmed that EU officials will propose a list of American goods to be subjected to new import duties. These items will reportedly range “from dental floss to diamonds”, signalling a wide-reaching and strategic effort to place pressure on the United States without escalating tensions beyond control. The European Commission, which is responsible for trade negotiations on behalf of the EU, is expected to present its formal proposal to member countries by Monday evening.

The Trump administration’s decision to impose 25 percent tariffs on European steel, aluminium and automobiles has already prompted strong opposition from Brussels. As part of its immediate response, the EU plans to impose 20 percent reciprocal tariffs starting Wednesday. Officials believe this measured but firm approach will protect European industry while deterring further escalation from Washington.

Trump’s trade actions have already drawn global criticism and have placed the United States on a collision course not only with the EU, but also with other key economic partners including Canada and China. Observers warn that retaliatory tariffs from all sides could spark a global trade war, raising prices on essential goods and potentially triggering an economic slowdown worldwide.

European exports to the United States were valued at over 530 billion euros (approximately 455 billion pounds sterling) prior to the announcement of the new tariffs. These exports now face significant restrictions, with about 70 percent of all EU exports to the US affected by Trump’s latest policy shift. There is concern that further duties could be introduced by Washington on products such as copper, pharmaceuticals, semiconductors and wood, which would further widen the rift.

Interestingly, Russia has not been included in Trump’s tariff list, with the White House stating that negotiations with both Moscow and Kyiv influenced the decision. Critics, however, see this as another example of the Trump administration’s willingness to favour authoritarian regimes while punishing democratic allies.

In one unusual twist, the Trump administration also announced tariffs on the remote and uninhabited Heard and McDonald Islands in the Indian Ocean, citing environmental protections for penguin populations as a reason. Analysts have dismissed this move as symbolic, highlighting the erratic and at times incoherent nature of the current US trade policy.