EU trade officials are dusting off their retaliation playbook after President Trump threatened to hike tariffs on European cars and trucks to 25%, calling the bloc non-compliant with a July trade deal that both sides are still trying to actually implement.
The French Trade Minister Nicolas Forissier delivered the message with Gallic flair on Tuesday: Europe has tools, and this time they won’t hesitate to use them, especially when it comes to protecting steel and other strategic interests. No more Mr. Nice Guy from Brussels — or at least, no more naive guy.
The fresh threat has injected fresh chaos into an agreement that was supposed to smooth things over. Under the July pact, the EU dropped levies on certain U.S. industrial goods in exchange for a 15% tariff ceiling on most European products. Washington has done some of its homework, but the EU points out the U.S. expanded steel and aluminum tariffs in August anyway, hitting hundreds more items.
It’s the classic trade negotiation dance: one step forward, two tariff steps sideways.
European leaders are now in full meetings mode. Forissier sat down with U.S. Trade Representative Jamieson Greer, while lawmakers in Strasbourg race to finalize ratification by June. Commission President Ursula von der Leyen insists they’re in the “final stages” of their own commitments. Meanwhile, French President Emmanuel Macron voiced hope that “reason would prevail” — the diplomatic way of saying “please don’t make us hit back.”
Businesses on both sides of the Atlantic are watching this ping-pong match with growing anxiety, wondering if their supply chains will survive another round of bureaucratic slap fights. The spat is even overshadowing G7 talks on China, critical minerals, and digital trade. Nothing says “global cooperation” like arguing over car tariffs while trying to coordinate on bigger headaches.
The EU has repeatedly signaled that “everything is on the table” if Trump follows through. Translation: they’ve got countermeasures ready, and steel is high on the list. For now, officials insist the July deal is moving at a “normal pace” — which in EU terms probably means glacial but steady.
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