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EU to approve retaliation against steel and aluminium

tariffs

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EU ministers debate response to broader US tariffs

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France says EU must consider tools that could hit US

services

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(Adds detail on proposed counter-tariffs in response to steel

duties)

By Philip Blenkinsop

LUXEMBOURG, April 7 (Reuters) - The European Commission

said on Monday it had offered a "zero-for-zero" tariff deal to

avert a trade war with U.S. President Donald Trump as EU

ministers agreed to prioritise negotiations, while striking back

with 25% tariffs on some U.S. imports.

The 27-nation bloc faces 25% import tariffs on steel and

aluminium and cars and broader tariffs of 20% from Wednesday for

almost all other goods under Trump's policy to hit countries he

says impose high barriers to U.S. imports.

On Monday evening, the Commission proposed its first

retaliatory tariffs at 25% on a range of U.S. imports in

response to Trump's steel and aluminium tariffs rather than the

broader levies.

However, the list was shortened after the EU executive bowed

to pressure from member states and removed bourbon, wine and

dairy after Trump threatened a 200% counter-tariff on EU

alcoholic drinks. France and Italy, major exporters of wine and

spirits, were particularly concerned.

EU trade chief Maros Sefcovic said earlier on Monday the

retaliation would impact less than the previously announced 26

billion euros ($28.42 billion). The tariffs for most of the

goods will go into effect May 16 and some from December 1.

Ministers overseeing trade met in Luxembourg on Monday to

debate the EU's response and discuss relations with China. Many

said the priority was to launch negotiations to remove Trump's

tariffs, rather than fight them.

Michal Baranowski, deputy economy minister of Poland, told a

press conference after the meeting that his EU counterparts did

not want to be "trigger-happy."

Sefcovic said discussions with Washington were at an early

stage and that he had offered "zero-for-zero" tariffs for cars

and other industrial products, expressing hope that discussions

could begin.

However, Trump's top trade adviser on Monday dismissed

tech-billionaire Elon Musk's push for "zero tariffs" between the

U.S. and Europe, calling the Tesla CEO a "car assembler" reliant

on parts from other countries.

"While the EU remains open to - and strongly prefers -

negotiation, we will not wait endlessly," Sefcovic said, adding

the bloc would push ahead with countermeasures and steps to

avoid floods of diverted imports.

The EU is set to approve the first retaliatory measures this

week. The bloc will start collecting the tariffs on April 15,

with a second tranche starting a month later.

EU KEEPS ALL RETALIATION OPTIONS OPEN

The bloc is expected to produce a larger package of

countermeasures by the end of April, as a response to U.S. car

and broader tariffs.

Sefcovic made clear the EU was ready to consider all

retaliatory options. One is the EU's Anti-Coercion Instrument,

which allows it to target U.S. services or to limit U.S.

companies' access to EU public procurement tenders.

"We are prepared to use every tool to protect single

market," he said, echoing the views of French Trade Minister

Laurent Saint-Martin.

In a war of tariffs on goods, Brussels has less to target

than Washington, given EU goods imports from the U.S. totalled

334 billion euros ($366.2 billion) in 2024, against 532 billion

euros of EU exports to the U.S.

Some EU countries, particularly those exposed to trade with

the United States, urged caution. Irish Foreign Minister Simon

Harris described the ACI as "very much the nuclear option."

Baranowski said EU members were open to keeping options

open, with a stress on proportionality.

"There were various ideas put on the table. Some countries

mentioned services. Other didn't. Some countries mentioned

digital services, others didn't," he said.

Outgoing German Economy Minister Robert Habeck said the EU

should realise it was in a strong position - if it was united.

"The stock markets are already collapsing and the damage

could become even greater ... America is in a position of

weakness," he said in Luxembourg.

($1 = 0.9121 euros)

($1 = 0.9148 euros)