What strategy the EU has chosen in the trade standoff with Trump and what response it plans

The abrupt shift in US trade policy has sent a shockwave through the global economy. But what matters even more is how the rest of the world responds.

The trajectory of the global economy in the coming years will depend on whether countries opt to protect their domestic markets or defend the liberal trade order, whether they escalate into a destructive trade war or choose gradualism and restraint.

Read more in the article by Veronika Movchan of the Institute for Economic Research and Policy Consulting – Europe’s answer to Trump: what the EU can counter in the US "trade war."

Unlike China or Canada, the European Union has chosen a more measured approach in its confrontation with Donald Trump, keeping "all options open." Still, it is among the few actors that have already announced countermeasures.

A key element of the EU’s strategy is gradualism and preferring to threaten tariffs rather than immediately enforce them.

For instance, the EU initially planned to reintroduce "rebalancing measures" from 1 April, first enacted in 2018 and 2020 in response to tariffs imposed by the Trump administration. However, the implementation was postponed to mid-April.

Then, on 9 April, EU member states voted to impose trade countermeasures against the US, effective 15 April. But the European Commission emphasised that the measures could be suspended at any time if the US agrees to a "fair and balanced" negotiation outcome.

Indeed, the very next day, 10 April, tariffs were halted for 90 days, mirroring Trump’s own decision to delay a 20% additional tariff on the EU (as well as other trade-deficit countries). EU Commission President Ursula von der Leyen said this was to give both sides room for consultations and talks.

The EU’s approach (announce, then pause) mirrors the US’s tactics but with a gentler tone.

Another defining feature: restraint. The rebalancing measures were meant to apply in stages and cover roughly €26 billion (7.8%) of the EU’s €333 billion imports from the US in 2024. A second phase would affect another €18 billion (5.4%).

The measures approved on 9 April target €21–22 billion in US imports, carefully selected to minimise economic fallout for the EU.

So far, the EU’s proposed tariffs comply with WTO principles, focusing on reciprocal action.

The third feature of the EU’s response is identifying the US’s pressure points.

One interesting element: the EU’s countermeasures appear strategically aimed at Republican-leaning states, increasing domestic pressure on Trump to strike a deal.

Finally, the EU is not merely seeking to reverse new barriers, but to build a constructive outcome. Among its proposals: both sides could agree on mutual zero tariffs on industrial goods, offering a way out of the escalating dispute.

In summary, the EU’s trade strategy toward Trump is marked by calculated caution, legal precision, targeted pressure, and a search for compromise, a contrast to more confrontational global responses.