Brussels leaders see U.S. tariffs—which came into force early on Wednesday—as an opportunity to show off European unity. However, EU member states have different ideas.
The bloc has coordinated a visit by Italian Prime Minister Giorgia Meloni to America later this month, when she is expected to negotiate tariff relief with President Donald Trump. This alone has triggered upset in France, where Industry Minister Marc Ferracci warned that “if we start having bilateral talks, of course it’ll break this momentum [on European unity].” French Europe Minister Benjamin Haddad added:
If you go to the United States scattered and divided, do you think you’re stronger than if you go all 27, with 450 million people? [Imagine the logistics of that visit!]
In fact, even within the French government itself there are splits, with some officials talking about an “extremely aggressive” retaliation to 25% tariffs on steel, aluminium and cars and 20% tariffs on most other goods, and President Emmanuel Macron saying “the aim is to reach a situation where President Trump reconsiders his decision” through negotiations. Macron’s hopes have perhaps been raised by reports of “tailored deals” being made between America and other countries hit by the measures.
EU member states today adopted their first measures in response to the tariffs, targeting more than €20 billion of U.S. products, though notably not on bourbon, wine and dairy, for fear of a serious trade escalation. The Commission said in a statement that
These countermeasures can be suspended at any time, should the U.S. agree to a fair and balanced negotiated outcome.
This is after European stocks took a battering this morning, sliding by around 1.8% in Paris and Frankfurt and 1.9% in London. Italy has also halved its 2025 growth forecast because of tariff fears.
It is worth noting that American stocks haven’t exactly fared well, either.
But, in a sign that the situation is likely to get much worse before it gets any better, Trump also signalled “major” pharmaceutical tariffs on Tuesday evening in order to return manufacturing to the U.S.
