The European Commission has strongly criticized U.S. President Donald Trump’s proposed “reciprocal” trade policy, warning of immediate and resolute action against any resulting tariff increases. Trump’s plan involves imposing tariffs on countries that levy tariffs on U.S. imports or impose digital services taxes on American companies, with potential targets including China, Japan, South Korea, and the European Union. The EU, emphasizing its low tariffs and commitment to free and fair trade, expressed disapproval of the unjustified nature of potential U.S. tariff hikes on its exports. Over 70% of imports into the EU currently enter tariff-free.

European countries argue that their value-added taxes on imported goods, though higher than those in the U.S., are not equivalent to tariffs as they apply equally to domestic products. Trump’s administration has criticized the EU’s 10% tariff on car imports compared to the U.S.’s 2.5% duty, as well as restrictions on U.S. shellfish imports. Additionally, the White House targeted the EU’s value-added tax and digital services taxes, particularly in France, which imposes a 3% tax on revenues from digital platforms.

While the EU is open to negotiating tariffs, it remains firm on its right to regulate. EU officials plan to intensify discussions with the U.S. in the coming weeks but assert that any unjustified tariffs will be met with proportionate countermeasures. Amidst ongoing trade tensions, the EU is prioritizing negotiations over retaliatory actions, aiming for a balanced and unified response if U.S. tariffs are implemented. The EU seeks to maintain a calm yet resolute stance, emphasizing equality and partnership in trade discussions.