How will the EU respond to Donald Trump’s tariffs?


Basically, how out the outgoing German advisor, Olaf Schools, described the new Trump tariff.
One side attack – this was the view of Prime Minister in Spain, Pedro Sanchez.
French President Emmanuel Macron described them brutally, unfounded, and it certainly has a “tremendous influence” on the European economy.
He held a meeting in emergency situations with representatives of the most affected French companies from the newly announced tariffs on the European Union commodities sold to the United States and issued an invitation to weapons to European businesses “not to invest in America for some time until we clarify things.”
“What is the message we will send by making the main European players invest billions of euros in the American economy at a time when [the US] He said, “Hit us?”
For France, wine, champagne, aviation industry, Germany, cars, and Italy are luxurious goods. These sectors are known to sell well abroad and are now risked by exposure to the import of the United States.
In general, the chemical, machinery and equipment industries in the European Union are the most vulnerable to tariffs.
But drilling a little deeper and there are other sectors in the European Union, which depends on the American market, which can be a surprise.
French Cograph, which was generally rejected as Tipple, is the old person in Europe, is the favorite wine of many American rapper, as he plays a prominent role in music and the lifestyle of stars such as Jay-Z, 50 Cent and Snooop Dogg. More than 40 % of the French brandy is exported to the United States.
Spain exports a lot of gas turbines to the United States, along with tons of olive oil.
What are the most exposed European Union countries?
When we look at any European Union countries exposed to the United States in terms of gross domestic product, the image is also not what you may imagine.
Ireland relies heavily on the United States in terms of goods and services. These exports – which are very associated with the drug industry (which are currently exempted from the definitions by 20 %, until the United States enhances its own production) and also technology – constitutes the five gross domestic product in Ireland.

Cyprus, Luxembourg and Malta are more likely than the European Union average in terms of service exports.
Belgium, the Netherlands and Slovakia are in a similar position when it comes to commodities.
Germany has more exposure to the United States more than other major European Union economies, at more than 5 % of GDP, followed by Italy (about 4 %), France (3 %) and Spain (slightly over 2 %). These numbers were collected in 2024 By Caixabank Research on the basis of Eurostat numbers for the previous year.
Will the European Union decrease?
The response to the new US definitions is coordinated in the European Union HQ in Brussels. The European Commission deals with all comprehensive commercial issues of the bloc members.
The Chairman of the Committee, Ursula von der Layen, claims to carry “a lot of cards”, including the power to negotiate and the authority to decline.
The American economy is strong. It constitutes 25 % of global gross domestic product.
But the European Union’s unified market of 450 million people (the largest unified market in the world) is close to size by 22 % of global GDP.
So, yes, the European Union can bite – difficult – in addition to bark when it comes to revenge on Donald Trump’s tariff. Especially if the European Union numbers are proposed, the block targets American services such as Big Tech, and perhaps including Apple, Meta, Amazon and even the Elon Musk X.
But this risk a new narration by the Trump administration. The European Union wants to avoid increasing the bet.
If the policy takes into account, not only the economy, the European Union has a lower space for maneuver than it believes.
Take Energy Supplies, the European Union bought us natural gas (LNG) after it was lost from Russian gas after the full invasion of Ukraine.
Difficult to reduce or impose heavily taxes on these imports. This would badly affect the European Union consumers, not only the United States industry, and this will exacerbate the gloomy relations with the United States.
Think about all the last rows of defensive spending and Ukraine. Regardless of economic hell, the European Union sees and hopes to avoid it in the new Trump tariff, the bloc also wants to avoid a trade war with the country that was the best friend in Europe.

So, the Brussels Plan is: the threat of intense revenge, Donald Trump’s hope is convinced to negotiate, then he prays that he will target the definitions.
The European Union Trade Commissioner, Marus Sivkovic, says he is speaking to his counterparts in the United States on Friday. It is an opening maneuver. The European Union does not rush to revenge.
What can the European Union offer the United States in negotiation?
The Trump administration has excluded any country negotiating its way out of the new definitions before it lives this week. But then, what can the European Union the US President to persuade him to decline?
Trump is glowing around the huge trade surplus of the European Union. He sells much more goods than he buys from the United States. The surplus of 2024 amounted to about 200 billion dollars (180 billion euros; 153 billion dollars).
It is in the opposite direction when it comes to services – the United States sells much more than the opposite. This is why the European Union believes that its main revenge influence against the United States will lie in services, such as banks and large technology.

To correct the imbalance in the goods, the European Union can offer to buy more liquefied natural gas from the United States, or more military equipment, after pledged Washington to do more for its security.
But this would break a different promise for the European Union – by increasing the taste of European weapons industries by trying to buy the European Union when rearranging the European Union countries. It is something that the United States has already objected to, so this is difficult.
Brussels can also cut direct and indirect customs tariffs on American goods. You can lose shares on American agricultural products.
It will be heavily hesitant to comply with the other United States: reduce its digital regulations that are roaming a lot, which aims to reduce monopolies and put restrictions on speech and content in the European Union.
How bad is all this?
How to pricing the potential collapse of the international trading system, asking European Union officials.
European companies are concerned about their markets that are overwhelmed by cheap goods from other European Union countries, which also suffer from Trump’s tariff and seeks to sell elsewhere.
The danger is very real when it comes to China. Trump slapped more than 50 % of the customs tariff to Beijing when adding everything.
Will the European Union must increase the duties of importing Chinese goods to protect itself and this can lead to an unintended trade war with China?
These are very anxious and unconfirmed economic times.
This is why the European Commission says it also wants to focus on matters that can be controlled – if the capitals of the European Union agree – and this reduces the internal barriers within the unified market of the European Union.
These barriers, such as tax systems, differ from one country to another and affect the total economic growth of the European Union and competitiveness.
The International Monetary Fund calculates that it is equivalent to a 45 % tariff for the manufacture of the European Union; 110 % when it comes to services.
This is much higher than the definitions it has now imposed on the European Union by Donald Trump.
European Union countries say they are united in combating these. So far they have been divided into completing their internal market.
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2025-04-03 23:55:00