Trump’s trade war heats up: EU warns of mirror tariffs on U.S. goods

“We will need to take reciprocal measures and restore balance in some key sectors if the U.S. insists on a unilateral deal,” said European Commissioner for Industrial Strategy Stéphane Séjourné.

He warned that even preserving a 10% tariff after the trade talks wrap up would trigger a response from the bloc.

“If we don’t restore balance, we will leave some leading sectors unprotected. There is a clear economic interest in acting this way,” Séjourné added.

According to the European Commission, current U.S. tariffs cover roughly 70% of EU exports, worth an estimated €380 billion.

If no agreement is reached, nearly all European goods could be hit with a 50% tariff in the United States starting July 9.

A source familiar with the matter told the outlet that EU–United States negotiations are intensifying, and the European Commission is working hard to secure a mutually beneficial outcome.

The EU has already drawn up retaliatory tariffs worth €21 billion in response to earlier U.S. duties on steel and aluminum. The list targets politically sensitive U.S. states and includes soybeans, poultry, motorcycles, and various agricultural products.

In addition, the EU is preparing another list worth €95 billion, covering a broader range of goods, including automobiles.

On April 2, 2025, the Trump administration officially enacted “reciprocal” tariffs affecting roughly 185 countries. The minimum tariff rate was 10%, including for Ukraine.

For China, the new rate was 34%. Combined with earlier 20% tariffs imposed in March over China’s alleged role in fentanyl trafficking, the effective rate rose to 54%.

Beijing responded on April 4 by imposing a 34% tariff on all goods from the United States and announcing export controls on seven types of rare earth metals used in high-tech manufacturing, such as computer chips — including gadolinium and yttrium.

Trump called the move “a mistake” and raised tariffs on China to 104% as of April 9.

China quickly struck back, raising tariffs on U.S. goods to 84% on the same day.

Trump then escalated again, setting Chinese tariffs at 125% for what he described as a “lack of respect for global trade,” while pausing the rollout of new tariffs on other countries for 90 days.

Despite the back-and-forth, Trump promised to lower tariffs on Chinese goods and insisted he had “a very good relationship” with Chinese President Xi Jinping. He clarified that tariffs would “come down significantly but not to zero.”

U.S. Treasury Secretary Scott Bessent said the tariff standoff with China could not last indefinitely and predicted “de-escalation” in future trade relations between the two powers.

Amid the escalating conflict, 12 U.S. states filed a joint lawsuit against Trump’s tariffs.

Meanwhile, China quietly began rolling back some of its tariffs on goods from the United States. According to CNN, sources said Beijing had dropped tariffs to zero on eight categories of integrated circuits — most semiconductor types except memory chips.

Bloomberg also reported that Chinese authorities were considering lifting tariffs on medical equipment and some industrial chemicals such as ethane. There are indications that Beijing may be preparing to eliminate additional tariffs on at least eight categories of semiconductor-related goods.

The two countries are also reportedly discussing the removal of tariffs on aircraft leasing from U.S. companies. The outlet noted that Chinese airlines, like many others, do not own most of their planes.

On May 12, 2025, the United States and China agreed to reduce mutual import tariffs for 90 days.

A new round of U.S.–China trade negotiations began in London on June 9, aimed at resolving the ongoing tariff war.