EU Considers Retaliatory Trade Measures

Amid mounting frustration with the U.S. tariff approach, Brussels signals readiness to implement retaliatory tariffs if fair conditions are not restored. German officials, among others, have urged a strong EU stance to defend trade interests—particularly in automobiles and steel.

The EU’s response reflects broader tension: it wants to avoid outright retaliation but is prepared for it should U.S. policies persist. Early verbal threats have already helped moderate U.S. proposals on EU steel, though implementation remains conditional.

Markets have responded with mild volatility in euro‑denominated assets and sectorally exposed equities. EU exporters are monitoring this closely, with currency and bond markets factoring in the potential for a slower resolution to trans‑Atlantic trade negotiations.