eu fires back: tariffs on us goods approved

2025-04-10 general

brussels, Thursday, 10 April 2025.
the european union has officially greenlit countermeasures against tariffs imposed by the trump administration. the approved tariffs range from 10% to 25% on select u.s. goods. this action intensifies global trade tensions. the eu’s response targets goods from politically sensitive states in the u.s. the tariffs are set to roll out in stages, starting april 15. this could trigger supply chain disruptions and affect companies like asml, nvidia and tsmc.

eu approves retaliatory tariffs

The European Union (EU) has officially approved the first set of countermeasures against tariffs imposed by the Trump administration [1]. These measures involve tariffs ranging from 10% to 25% on specific U.S. goods [1][2][3]. The EU’s decision follows the U.S. levying tariffs on steel and aluminum imports [3]. The EU tariffs will be applied to goods such as tobacco, motorcycles, poultry, steel, and aluminum [2]. These retaliatory tariffs signify an escalation in trade tensions between the U.S. and the EU, potentially impacting global trade and investment strategies [1].

market reaction and sector impact

The EU’s countermeasures could trigger market volatility, particularly affecting companies with significant transatlantic operations [GPT]. Sectors like agriculture, manufacturing, and technology face uncertainty due to potential supply chain disruptions and increased costs [1]. Companies such as ASML, Nvidia, and TSMC, which rely on global supply chains, may experience fluctuations in stock performance [1]. The tariffs on U.S. goods, including agricultural products, target states that support the Republican party, adding a political dimension to the economic impact [1].

expert opinions and economic forecasts

The European Commission stated that the U.S. tariffs are unreasonable and damaging to both economies and the global economy [2][3]. The EU aims to negotiate a balanced agreement with the U.S. and is willing to suspend the countermeasures if such an agreement is reached [1][2]. However, Trump has signaled that the EU’s concessions are insufficient, maintaining a firm stance on trade policies [2]. Some analysts predict that the U.S. tariffs could offset much of the Eurozone’s growth forecast by the European Central Bank for the next two years [7].

investment strategy adjustments

Investors should consider diversifying their portfolios to mitigate risks associated with the trade tensions [GPT]. European companies with substantial assets in the U.S. may face lowered earnings forecasts [8]. Goldman Sachs noted that approximately 30% of European companies’ assets are in the U.S [8]. Analysts anticipate a 7% drop in earnings per share for European listed companies in 2025, with flat growth in 2026 [8]. Investors should closely monitor policy developments and adjust their strategies accordingly to navigate the evolving trade landscape [GPT].

Bronnen

trade war tariff countermeasures