The New Trade Front – Europe’s Response to Trump’s Tariff War

Brussels, mid-July 2025. A shadow fell across the halls of the European institutions as Donald Trump announced new tariffs from the White House – 30 percent on imports from the European Union, starting August 1. It was a moment of shock, one of those sudden pinpricks in the fragile skin of transatlantic relations. And yet: Europe’s response remained calm, unified, but unequivocal. The trade ministers of the EU member states met in Brussels on Monday – not with fists on the table, but with a clear message: We are ready to negotiate, but equally ready to strike back. Danish Foreign Minister Lars Løkke Rasmussen spoke after the meeting of a “strong sense of unity” in the room. And he didn’t just mean words. The EU, the United States’ largest trading partner and the world’s biggest internal market, remains on high alert. The planned countermeasures were temporarily suspended – not out of weakness, but as a strategic calculation. European Commission President Ursula von der Leyen said Trump’s letter made it clear: there is a window of time until August 1. Until then, every effort will be made to avoid a disastrous trade war. Negotiations, that much is certain, are already underway – in full swing. EU Trade Commissioner Maroš Šefčovič continued them on Monday and stated firmly: “I am 100 percent convinced that a negotiated solution is better than the tensions that would otherwise await us.”

But the willingness to find an agreement does not mean naivety. The tone is polite, but the gaze is alert. The Commission makes clear: should Trump stick to his course, it will respond with “well-considered, proportionate countermeasures” to restore the balance in the transatlantic economic relationship. The idea of sitting back while American punitive tariffs hit European industries – from French cheese to German electronics to Spanish pharmaceuticals – is out of the question. The economic damage would be immense, not just for Europe, but for the U.S. as well. The American Chamber of Commerce in the EU, the voice of many major U.S. companies, issued a stark warning against a wildfire of “damaging ripple effects across all sectors” of both economies – and praised the EU’s measured behavior. That Trump is now sending out letters with tariff threats again after a 90-day moratorium follows a pattern of tactical escalation. Already in April, he had initiated similar measures against numerous countries to force bilateral deals – a game of fire in which every negotiation feels like a test balloon, every retreat like a calculated move. This time, alongside the EU, Mexico was also affected, and was likewise given a deadline until early August. Should the U.S. president follow through with his threat, the global economy would once again be thrown into turmoil – and at a time already marked by uncertainty.

Europe’s answer to this course? Unity – but also new alliances. In response to repeated rebuffs from Washington, the EU is intensifying its trade relationships with other world regions. On Monday, Šefčovič spoke of “doubling down on efforts to open new markets.” The free trade agreement with Indonesia, signed over the weekend during a visit by the country’s president to Brussels, is just the beginning. Further talks with countries in the Pacific region – South Korea, Japan, Vietnam, Singapore, the Philippines – are underway. Major deals with Mexico and the South American Mercosur bloc are also being prepared. And next week, Šefčovič will meet with his counterpart from the United Arab Emirates. All this shows: Europe is recalibrating its economic compass – not as a break from America, but as a safeguard against its unpredictability. At the summit with Indonesia’s president, Ursula von der Leyen emphasized: “When economic uncertainty meets geopolitical volatility, partners like us must come closer together.” In these words lies more than diplomatic pathos – it is the clear realization that Europe must act because others are no longer reliable. While Trump in Washington discovers tariffs as a political weapon, Brussels responds with a clear course, international alignment, and a will to de-escalate – if necessary, with firm resolve. The world is watching as a new trade order takes shape on both sides of the Atlantic. And Europe is determined not to be a bystander in this game, but an active player.