section_path: Trade conflicts by country/Europe/European Union
section_name: European Union
paragraph_text: European Union
  
  Before his second inauguration, Trump threatened to impose tariffs on the European Union (EU) unless it reduced its trade surplus with the US by increasing imports of American cars, agricultural products, and oil and gas. The European Commission pointed out that while the US ran a trade deficit with the EU in goods, it was offset by a trade surplus in services.
  
  On February 2, 2025, Trump told reporters he planned to impose tariffs on the European Union "pretty soon". Some EU leaders threatened immediate retaliation while others expressed concerns about reigniting global inflation. "We have to do everything to avoid this totally unnecessary and stupid tariff war," said Polish Prime Minister Donald Tusk. On February 4, 2025, EU trade ministers met in Warsaw to discuss Trump's threats. On February 7, the EU proposed lowering tariffs on car imports from 10% to closer to the US' 2.5% rate and to increase purchases of American liquefied natural gas and military equipment. French President Emmanuel Macron met with Trump on February 25 and encouraged him to concentrate on China instead of initiating a trade war with the EU.
  
  On March 12, Donald Trump claimed during his meeting with Taoiseach Micheál Martin at the White House that Ireland was taking advantage of America. He also referred to the "tremendous" trade surplus that Ireland had with the United States.
  
  After Trump's global steel and aluminum tariffs took effect on the same day, the EU announced a two-phase retaliatory plan targeting €26 billion in US imports, set to begin April 1. Phase one reinstated tariffs on iconic American products, such as bourbon whiskey, originally imposed during Trump's first term tariffs and suspended in 2023 after negotiations with President Joe Biden. Phase two would impose tariffs on an additional €18 billion in U.S. industrial and agricultural goods. Trump condemned the EU's planned 50% whiskey tariff and threatened 200% tariffs on EU alcohol in response. The EU postponed retaliation to mid-April, and ultimately dropped all alcohol tariffs after lobbying from Ireland, Italy, and France, major exporters of wine and spirits.
  
  On March 27, 2025, the United States imposed a 25% tariff on all car imports, significantly affecting Germany, the world's largest automobile exporter. On April 2, Trump announced a 20% tariff on all European Union imports, effective April 9, as part of his "reciprocal tariff" policy. In response, EU leaders offered the United States a "zero-for-zero" tariff agreement on industrial goods, such as automobiles, pharmaceuticals, and machinery, on April 7. A similar deal had nearly been reached during negotiations over the proposed Transatlantic Trade and Investment Partnership, which Trump halted during his first term. At the time, the EU's average tariff on non-agricultural goods stood at 1.6%.
  
  On April 9, the EU approved a reduced package of 25% retaliatory tariffs on €21 billion worth of US imports, set to take effect on April 15. The targeted goods were selected to be easily sourced from alternative suppliers, with some measures strategically aimed at US red states. The only dissenting EU member was Hungary, whose prime minister, Viktor Orbán, is one of Trump's strongest supporters. However, Trump delayed the implementation of certain tariffs for 90 days, reducing the baseline rate on EU imports from 20% to 10%. In response, the EU suspended its retaliatory measures for the same period.
  
  European Commission President Ursula von der Leyen warned that if negotiations failed by the end of the 90-day window, the EU would initiate what she described as "EU trade bazooka measures." She indicated that further countermeasures would target the United States's substantial services surplus with the EU. Von der Leyen also stated that the EU would not tolerate the redirection of Chinese exports hit by US tariffs into the European market and suggested plans to implement regulatory measures to limit such imports. Italian PM Giorgia Meloni visited Trump at the White House on April 17, aiming to convince him to accept the EU's "zero-for-zero" tariff offer for industrial goods.
  
  On May 5, 2025, following Trump's 100% tariff on foreign-made films, Europe announced that it would not impose counter-tariffs on Hollywood films. On May 8, the EU proposed retaliatory tariffs on nearly €100 billion of the U.S. imports, including aircraft, passenger cars, medical devices, chemicals and plastics, etc.
  
  On May 12, Trump, following trade talks with China in Switzerland, described the EU as "nastier than China", adding that the union would "come down a lot." and that the U.S. had "all the cards", in remarks similar to what was stated during the 2025 Trump–Zelenskyy Oval Office meeting regarding Ukraine.
  
  On May 15, EU commission official Matthias Jørgensen said that it was "very possible" that the EU and the US would not "get rid of all the tariffs", in which case, he stated, that the EU "might have to rebalance on" its "side".
  
  On May 23, after complaining that trade negotiations have stalled, Trump proposed a "straight 50% Tariff on the European Union" starting from June 1. The Stoxx Europe 600 index fell 1.7 per cent.
  
  On May 25, only two days after proposing a 50% tariff on all EU goods, Trump announced that the tariff would be delayed to July 9, after a call with Ursula von der Leyen.