March 26, 2025 – The European Union’s top trade negotiator, Commissioner Maroš Šefčovič, warned today that the Trump Administration is poised to slap 20% tariffs on EU goods as early as next week, igniting fears of a transatlantic trade war. With the measures expected to kick in around April 2, the move threatens to upend economic ties and send shockwaves through global markets.
The announcement follows Šefčovič’s recent talks in Washington, where U.S. officials signaled an aggressive stance, building on the 25% steel and aluminum tariffs already imposed globally on March 12. Sources indicate the new tariffs, part of Trump’s promised “reciprocal trade” agenda, aim to level the playing field with the EU’s own duties. “We’re heading into uncharted waters,” Šefčovič said, hinting at a bruising retaliation from Brussels.
What’s at Stake?
- Higher Costs for EU Exporters: European industries could lose their edge in the U.S. market as tariffs jack up prices. German automakers like Volkswagen, French winemakers, and Italian cheesemakers are among the hardest hit.
- EU Strikes Back: The EU isn’t taking this lying down. Plans are underway to reinstate suspended duties from 2018-2020 on April 1, targeting U.S. goods like bourbon and motorcycles. A second wave, set for April 13, will slap tariffs on $19.6 billion of American exports.
- Diplomatic Fallout: Tensions are soaring after failed attempts by EU leaders, including French President Emmanuel Macron, to sway Trump. Analysts predict strained ties and economic uncertainty ahead.
- Key Sectors in the Crosshairs: Automotive, agriculture, and tech industries are bracing for impact. The U.S. imports significant steel from the EU, while Europe leans on American tech and farm products.
- Supply Chain Chaos: Global trade networks could buckle, driving up costs and prompting shifts in alliances. Companies like Lindt are already rerouting production away from U.S. factories.
A Game of Economic Chicken
The EU’s two-phase retaliation—starting with $9 billion in duties, then escalating to match the U.S.’s $28 billion tariff hit—signals a readiness for a prolonged standoff. Meanwhile, Trump’s camp is touting April 2 as “Liberation Day” for American industry, doubling down on protectionism.
Markets are jittery, with the Euro dipping 1.2% against the dollar today. Experts warn that consumers on both sides of the Atlantic could face higher prices as supply chains wobble and trade alliances shift—possibly pushing the EU toward deeper ties with India or China.
“Buckle up,” said trade analyst Elena Rossi. “This is about to get bumpy.”