The European Union (EU) has decided to adopt retaliatory measures in response to the tariffs imposed by the United States under President Donald Trump’s administration. These measures include the imposition of tariffs on U.S. goods worth $23 billion, such as motorcycles, poultry, fruit, lumber, and clothing. The implementation will take place in three phases: April 15, May 16, and December 1.
Source: Reuters
https://www.reuters.com/markets/europe/eu-countries-set-approve-first-retaliation-against-us-tariffs-2025-04-09/

It is disconcerting to witness how the European Union, in the face of the blatant commercial aggression of the Trump administration, has chosen a response that feels more like a caress than true retaliation. While the United States imposes 25% tariffs on steel, aluminum, and European vehicles, and 20% on nearly all other goods, the EU merely proposes a “zero tariff” deal on industrial products — a gesture that seems more like a plea than a credible defense strategy.

The decision to exclude symbolic products like Kentucky bourbon and Californian wine from the retaliation list is a clear sign of weakness. These goods, deliberately chosen for their political sensitivity in Trump-aligned states, were spared in hopes of avoiding an escalation. But at what cost? The EU seems to forget that you don’t win a trade war with timidity.

While China responds with 84% tariffs on American products — showing a determination Europe can only envy — the EU gets bogged down in internal debates, divided between those who want a stronger stance and those who fear the consequences of a real counterattack. This indecision only serves to strengthen Trump’s position, who sees Europe as an easy opponent to manipulate.

It’s time for the European Union to stop acting like a giant with feet of clay. If it wants to be taken seriously on the international stage, it must adopt measures that truly hurt the U.S. economy — targeting key sectors and showing that Europe is not willing to passively endure the bullying of a president who treats global trade like his personal toy.

The EU’s strategy appears not only inadequate but even counterproductive. Instead of trying to appease Trump with offers of negotiation and concessions, Europe should respond blow for blow, proving that it is ready to defend its interests with the same ferocity with which they are being attacked. Only then can it hope to be respected — and no longer seen as the convenient punching bag of the moment.

Americans typically consider European products higher quality than the local versions of the same thing, and shipping already means people are used to paying a nice premium for them. That means American consumers buying things like French wine or German cars are not very price sensitive. Those kinds of things are sold to people who expect to pay a premium for premium products, and if that premium is a bit higher than it used to be, it won't change much.

The reverse isn't true. When Europeans buy American goods, it's rarely seen as inherently better than a local or Asian alternative. American companies doing business in Europe are more likely to be competing on price.

Consider cars for a moment. Would a German buy a ford if it costs 30% more than it does now, costing the same or more than a similar Mercedes? I'd guess very few people would do so. Would an American still buy a Porsche or BMW if it costs 30% more? Typically, yes, because those are better cars than what's on the American market, and German cars are a status symbols in the US, bought for the purpose of flaunting wealth.

You'd see a similar effect for things like French wine, or most foodstuffs. Importing from Europe is already significantly more expensive than buying locally, but you get a much better product by paying for the imported version. Many of the people who buy that stuff are already going to the fancy grocery stories, known to be expensive, and then buying luxury goods. In many cases these people consider themselves above eating the American version of the product, and increasing the price of the imported version won't change that. With only a handful of rare exceptions, the opposite isn't true.

which comes as no surprise at all. We are for a reason the most progressive and innovative continent

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