EU Trade Commissioner to Discuss U.S. Tariffs with American Counterparts Amid Escalating Trade Tensions
Brussels, April 3, 2025 – European Union Trade Commissioner Maroš Šefčovič is set to hold talks with his U.S. counterparts on Thursday, April 4, as the bloc scrambles to avert a full-blown trade war sparked by President Donald Trump’s sweeping tariff policies. The virtual meeting, confirmed by the European Commission late Wednesday, comes as the EU prepares a unified response to the U.S.’s “reciprocal tariffs” plan, rolled out on April 2, which imposes duties matching or exceeding those faced by American exports—a move that threatens billions in EU goods, from steel to cars.
A High-Stakes Dialogue
Šefčovič’s agenda includes Commerce Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer, and White House economic adviser Kevin Hassett—key figures in Trump’s trade strategy. The talks follow a fruitless trip to Washington last week, where Šefčovič’s offers to boost EU purchases of U.S. energy and defense goods failed to sway the administration from its tariff course. “The EU will act in a calm, unified way, but we won’t stand idly by if a fair deal eludes us,” Šefčovič said in a statement, signaling both openness to negotiation and readiness to retaliate.
The U.S. tariffs, effective Tuesday, include a 25% levy on all steel and aluminum imports—reactivating a dispute from Trump’s first term—and a broader “fair and reciprocal” framework targeting nations with trade surpluses, like the EU’s €155.8 billion goods surplus in 2023. Trump, speaking at a Monday cabinet meeting, claimed the EU was “formed to screw” the U.S., justifying duties that could hit €29.3 billion in EU exports, per Bloomberg estimates. The EU, which enjoys a $710 billion trade relationship with the U.S., sees these measures as “unjustified” and economically damaging.
EU’s Response Takes Shape
Today, EU envoys convene in Brussels at 8 a.m. ET to hammer out a coordinated strategy, the first formal step toward countermeasures worth up to €26 billion ($28 billion). European Commission President Ursula von der Leyen, addressing the European Parliament on Wednesday, reiterated the bloc’s preference for dialogue but warned, “I know many of you feel let down by our oldest ally. We are ready to respond if needed.” The EU plans to reimpose suspended tariffs from 2018—hitting U.S. goods like bourbon, Harley-Davidson motorcycles, and jeans—starting April 15, with a second wave targeting €18 billion in products like soybeans and tech goods by mid-month.
Šefčovič’s talks aim to avert this escalation. The EU has floated reducing its 10% car tariff and aligning on China’s industrial overcapacity—issues Trump has fixated on—but U.S. officials appear unmoved, prioritizing what Lutnick called “rebalancing” trade. Posts on X reflect the EU’s frustration, with one user noting, “Efforts to offer concessions have failed entirely so far,” highlighting the bloc’s struggle to find leverage.
A Transatlantic Standoff
The stakes are high. Germany, the EU’s top exporter to the U.S., faces losses in its auto and pharma sectors, while France worries about wine and spirits. Trump’s team has threatened a 200% tariff on EU alcohol if retaliation proceeds, escalating the tit-for-tat risk. Economists warn of inflation and supply chain chaos, with the U.S. facing higher consumer prices and the EU bracing for job losses in a sluggish economy. “This isn’t just about trade—it’s about trust,” said French Economy Minister Eric Lombard, echoing a sentiment felt across the 27-member bloc.
As Šefčovič prepares to face his U.S. counterparts, the EU walks a tightrope: negotiate a deal to protect its $878 billion transatlantic trade flow or unleash a “well-calibrated” counterstrike that could deepen the rift. With trade ministers set to meet in Luxembourg next week and markets jittery—stocks slumped Tuesday before a partial rebound—the outcome of Thursday’s talks could define EU-U.S. relations in Trump’s second term. For now, Brussels holds its breath, hoping one hand might yet clap with the other.
