The Trade Ministers’ Meeting, held in Luxembourg on Monday, approached an agreement on a list of US goods to target, in response to a recent US decision to impose tariffs on steel and aluminum.
However, the second round, designed to reply to blanket 20% tariffs on other imports from the block, and the 25% flat rate for cars, is controversial.
The first round of measures scheduled to be adopted on Wednesday is likely to include US products such as bourbon whiskey after this inclusion, especially if whiskey remains on the list, after a threat from US President Donald Trump to impose a 200% tariff on European wines and spirits.
France, Italy and Spain have called for the removal of whiskey from retaliatory measures to avoid escalating tensions with the US over the past few weeks.
The EU diplomat added to the Euroneus, “We need to balance the right amount of money to protect the most exposed EU economy.”
Retaliation tariffs will be staged in stages with a second wave set between April 15th and May 15th. The goals of these initial measures show that they are ready to push the US to the negotiation table and stand firmly in the ongoing trade dispute.
The contract for the first round of tariffs is expected to be finalised in time for Wednesday, but the second phase of the EU strategy is still under discussion.
This “Plan B” addresses US tariffs on automobiles and other sectors, but member states are divided into the best approaches. Large economies like France and Germany have shown openness to using more aggressive measures, such as blocking US companies from public EU contracts, while smaller states like Spain, Italy and Ireland prefer a more cautious approach.
Despite these sectors, the EU aims to maintain a unified stance. Once the initial list is approved, the EU hopes to provide leverage in future negotiations with the US, highlighting the preparation of a block that escalates as needed. However, the leader is keen to avoid a trade war and is determined to balance it with standing company maintaining diplomatic relations with Washington.
