European Union (EU) struck back at President Donald Trump’s tariffs on Wednesday, putting tariffs on US products like bourbon, motorcycles, and boats in retaliation for new US tariffs on steel and aluminum.
The move comes after Trump raised tariffs on global steel and aluminum imports to 25%, a policy that came into effect on Wednesday.
The EU’s tariffs target roughly $28 billion USD in US exports, with plans to hit an additional $19 billion in goods by mid-April.
Starting April 1, the EU will reapply tariffs first introduced during Trump’s first term, targeting products such as Harley Davidson motorcycles, jeans, and bourbon whiskey, an important export of Kentucky and home state of Republican Mitch McConnell.
A second round of tariffs on items like cookware and other products containing steel will follow after consultations finish between the EU member countries.
“We deeply regret this measure,” said European Commission President Ursula von der Leyen.
“Jobs are at stake, prices up. Nobody needs that.”
The EU has warned for months it would retaliate if Trump revived trade barriers, arguing such moves harm both economies.
European leaders had attempted to negotiate a trade deal to prevent a trade war, but they claim that the US government has not made any serious efforts to avoid the trade war.
“One hand cannot clap,” said EU Trade Commissioner Maros Sefcovic, pointing out that talks with US officials last month showed possible compromises but ended with no serious negotiations.
The tariffs are zeroing in on industries tied to Republican strongholds.
During Trump’s first term, the EU similarly targeted Kentucky bourbon and Wisconsin made Harley Davidsons.
The clash poses risks for the European economy, particularly for Germany as the top EU exporter to the US.
With economic growth already slow, prolonged tariffs could raise costs and disrupt international trade.
Since last year, an EU “Trump task force” has strategized for his potential return to “protectionist policies.”
Despite preparations, the EU insists it prefers diplomacy over escalation.
US tariffs now affect over $370 million in EU steel and aluminum exports.
The EU’s retaliatory taxes aim to match that economic impact.
As tensions rise, both sides face pressure to resolve the dispute.
But with Trump showing little interest in negotiations, which leaves businesses on both sides of the Atlantic bracing for fallout.