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The European Union is firing back at Washington’s trade aggression with its own round of tariffs, as Brussels prepares a united front in response to former President Donald Trump’s protectionist push.
According to Kathimerini's George Kakouris, just one day after Trump announced a whopping 104% tariff on all goods from China, the EU is expected to approve a retaliatory package of tariffs on U.S. products worth €22 billion, including items like soybeans, rice, plastic goods, clothing, cosmetics, and even dental floss.
This marks a serious shift in the EU’s trade stance, signaling that Europe is no longer willing to sit back while the U.S. sets the rules.
Unity Over Bourbon
Interestingly, while the EU’s new tariffs are broad, they stop short of targeting American alcohol like bourbon. That’s no accident. Major wine-producing countries like France, Spain and Italy reportedly pushed to keep such items off the list, fearing backlash on their own exports.
Still, European officials are aiming for unanimity among member states, hoping that a unified response will send a stronger message to the U.S., especially as Washington tries to push countries into negotiating bilateral trade deals instead of dealing with Brussels as a bloc.
Calm But Firm
Despite the firm stance, EU officials are urging calm. European Commission spokesperson Olof Gill said any further response to U.S. tariffs—particularly on cars and broader imports, would be “gradual, calm, regulated and targeted.”
Brussels hasn’t yet decided whether to hit U.S. tech and service giants or activate the EU’s anti-coercion mechanism, a tool that could allow it to widen its retaliation but has never been used before.
Enter China
What’s more telling is Europe’s quiet pivot toward China.
As tensions with Washington escalate, EU leaders are stepping up dialogue with Beijing. On Tuesday, European Commission President Ursula von der Leyen held a phone call with Chinese Premier Li Qiang to discuss trade issues, including market access for European companies in China.
According to EU sources, the two sides are laying the groundwork for a high-level summit this summer, part of a broader strategy that Brussels describes as "de-risking" from China, not decoupling, but managing the relationship more pragmatically.
The timing is no coincidence. Europe is already concerned that Trump’s China tariffs will lead to a flood of redirected cheap goods from China to Europe. Building stronger lines of communication with Beijing could help mitigate that.
Cyprus Walking a Tightrope
Cyprus, meanwhile, is treading carefully. At the European level, it supports a unified response, but it's also cautious about damaging ties with the U.S., especially at a time when cooperation is needed on issues like Ukraine.
While Cyprus isn’t directly affected by the U.S. tariffs, Finance Ministry officials are keeping an eye on the broader European impact, particularly how it could affect tourism, investment, and overall economic stability.
Central Bank Governor Christodoulos Patsalides confirmed on Monday that scenario planning is underway within the Eurosystem, with findings expected to be made public in June.
A Global Shift
In the bigger picture, the EU’s retaliatory move and its outreach to China mark a clear turning point in global trade dynamics. As Trump ramps up tariffs and brushes off multilateral deals, Brussels is signaling it won’t be pushed around.
And in a world increasingly shaped by power plays and protectionism, the EU and China, two unlikely partners, might just be finding common ground.
