Ministers broadly agreed that the EU should prioritize lifting the tariffs imposed by US President Donald Trump, rather than opting for immediate retaliation. However, a first salvo of targeted countermeasures is already in the pipeline.

Von der Leyen in passive-aggressive mode

At her press conference, Ursula von der Leyen announced a proposal from Brussels: a total, reciprocal abolition of customs duties on industrial products. "We have proposed zero tariffs for industrial products. Europe is always ready to conclude a good agreement", she declared, while affirming that the Union remained ready to respond with countermeasures and to defend [its] interests" if no common ground were to emerge.

This offer, which is perhaps intended to test the Trump administration's real willingness to engage in dialogue, could also serve as a barometer for assessing the tone of negotiations in the weeks ahead.

Reaching out without lowering our guard

French Trade Minister Laurent Saint-Martin was the most aggressive at the end of the meeting. He argued that the EU should not rule out any options, notably citing the European Anti-Coercion Instrument (EACI), a mechanism designed to respond to this kind of economic pressure. This tool would make it possible to target American services or restrict their access to European public procurement contracts. "No taboo should hold back our response. The EU has a very complete and potentially formidable toolbox at its disposal", he insisted.

Representatives from other member states were more cautious. Ireland's Foreign Minister, Simon Harris, described the IFA as a "nuclear option", and said that the majority of the EU-27 preferred to avoid this type of confrontation for the time being. With almost a third of Irish exports destined for the US, Dublin is particularly fearful of swift, targeted retaliatory measures.

Countermeasures ready - although targeted

While the Union's strategy is focused on negotiation, a first concrete response is expected in the coming days. A first series of countermeasures, targeting up to $28bn of US imports, is expected to be validated this week. These measures specifically target Washington's steel and aluminum tariffs. The EU, on the other hand, has chosen to hold off on the more far-reaching "reciprocal tariffs" imposed by the United States.

A second, broader retaliation plan is expected by the end of April. However, Brussels' leeway remains limited when it comes to reciprocity. In 2024, the EU exported €532bn worth of goods to the US, compared with €334bn in US imports.

Diverging interests

While Moody's has singled out Ireland, Slovakia, Germany, Hungary, Italy and Austria as the potential countries most affected by these tariffs due to the share of their exports to the US. On the other hand, Trump has hinted at imposing a 200% tax on European alcoholic beverages if the Union applied a 50% tariff on American bourbon. A measure that would hit countries like Italy and France hard.

In this context, European unity is crucial. Robert Habeck, Germany's Minister of Economic Affairs, insisted on the need to speak with one voice: "America is in a weak position. Stockmarkets are already collapsing, and the damage could be much greater." But he also warned against wide-ranging national claims: "If every country comes to defend its red wine, whisky or pistachios, we'll end up doing nothing."

The aim is therefore to preserve the Union's strategic interests while avoiding a destructive trade war. A delicate equation, all the more so as economic interests within the EU diverge. In this tense climate, the Union walks a fine line: extending a hand without lowering its guard

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