EU Unveils $28 Billion Countermeasures to Trump’s Tariff Offensive

The European Union rolled out $28 billion in countermeasures against U.S. goods responding to President Trump’s sweeping tariffs on steel aluminum and other imports that kicked in this month. The bloc’s leaders finalized the plan after weeks of debate targeting American icons like motorcycles whiskey and jeans to hit back at Trump’s trade war. This retaliation aims to shield EU industries while pressuring the U.S. to reverse course on policies shaking global markets.

EU trade chief Valdis Dombrovskis said the measures match Trump’s tariffs dollar-for-dollar starting next week with duties up to 25 percent. The list zeroes in on exports from states like Kentucky and Wisconsin key to Trump’s base hoping to sway GOP support. It echoes the EU’s 2018 playbook when it slapped levies on $3 billion in U.S. goods after similar steel tariffs sparking a quick truce.

Trump’s latest tariffs cover $350 billion in EU exports citing security and unfair trade practices a claim Brussels rejects as baseless. The U.S. move threatens 50000 European jobs per industry estimates with Germany’s carmakers and France’s winegrowers hit hardest. EU officials argue America’s own consumers will bear the brunt as prices for imported goods climb.

Negotiations faltered last month when Trump rebuffed EU pleas for exemptions unlike Canada and Mexico which got temporary reprieves in 2018. The White House insists the tariffs curb illegal immigration and drug flows via trade routes a link the EU calls absurd. This deadlock has dashed hopes of a swift deal leaving both sides digging in for a prolonged fight.

European steel giant ArcelorMittal warned of plant closures if the U.S. doesn’t relent by fall with 12000 jobs at risk in Spain alone. Farmers in Italy and Ireland face losing $1 billion in U.S. sales as tariffs bite into pork and cheese exports. The EU’s countermeasures aim to offset these losses while signaling unity against what it deems American overreach.

Trump hinted at doubling down with a 50 percent rate if the EU doesn’t back off escalating tensions ahead of G7 talks. European leaders like Germany’s Olaf Scholz urged calm but vowed to protect their $1.1 trillion trade tie with the U.S. The bloc’s pivot to alternative markets like Asia gained steam as a hedge against further U.S. shocks.

American firms like Ford and Jack Daniel’s braced for a sales dip in Europe where retaliatory tariffs take effect next week. U.S. retailers scrambled to stockpile EU goods driving a 15 percent surge in shipping costs since January. The trade war’s fallout has Wall Street on edge with the Dow dropping 300 points after the EU’s announcement.

This $28 billion salvo marks the EU’s boldest stand yet against Trump’s protectionism testing transatlantic bonds. Analysts see little chance of détente before 2026 midterms when U.S. voters might punish tariff backers. For now Europe holds firm betting economic pain will force Trump to the table as both sides brace for a bruising battle.