News / EC slams US 'reciprocal tariffs' plan and says the trading bloc will retaliate

© Tanaonte

The European Commission (EC) has branded the latest US “reciprocal tariffs” as “a step in the wrong direction”.  

After the past few weeks of tariff-pandemonium, the Trump administration has released yet another plan to boost the US trade deficit.  

With its Reciprocal Trade and Tariffs Plan, the administration will examine the arrangements with all the US trading partners and determine an equivalent “reciprocal tariff” for each.  

A White House statement yesterday said: “The plan shall ensure comprehensive fairness and balance across the international trading system by factoring-in losses as a result of measures that disadvantage the United States as applied, regardless of what they are called or whether they are written or unwritten.” 

It added: “The US has one of the most open economies in the world, yet our trading partners keep their markets closed to US exports — and reciprocal trade will finally correct that imbalance.” 

The EC has hit back saying it “sees no justification for increased US tariffs on its exports”.  

It added today: “Tariffs are taxes. By imposing tariffs, the US is taxing its own citizens, raising costs for business, stifling growth, and fuelling inflation. Tariffs heighten economic uncertainty and disrupt the efficiency and integration of global markets.”

And, while the commission assured it “remains committed to an open and predictable global trading system that benefits all partners”, it vowed to react “firmly and immediately” against the US, adding: “The EU will always protect European businesses, workers, and consumers from unjustified tariff measures.” 

Within 180 days, the director of the US office of management and budget will assess the fiscal impacts of the Reciprocal Trade and Tariffs Plan and deliver an assessment in writing to the president – however, there has been inconsistency between plan and action. 

President Trump previously threatened a blanket 10%-20% global tariff on imports, with a 25% tariff on those from Mexico and Canada. But then he revoked it for “a 30-day review”, placed 25% tariffs on steel and aluminium imports, threatened 60% tariffs on Chinese imports but settled for 10%, and paused the de minimis exemption on Chinese shipments, but then re-instated it two days later, also for a 30-day review.  

Meanwhile, India is establishing closer relations with the US. A meeting this week between President Trump and India’s prime minister, Narendra Modi, ended with reports of a “mega-partnership” deal for India to import more US oil and gas. 

During Mr Modi’s two-day visit, President Trump criticised India’s high trade tariffs as “a big problem”, and the Indian leader said he was open to reducing tariffs on US goods. 

The Loadstar has previously reported that, in a pre-emptive strategy in its 2025-26 federal budget announcements, New Delhi substantially slashed Indian import duties on high-end/luxury motorcycles and cars – aiming to benefit US shippers Tesla and Harley-Davidson.  

These cuts range between 5% and 10% on motorcycles imported as finished or semi-finished, while on cars priced above $40,000 the duty has been reduced to 70%, from 125%.