The EU’s €21bn retaliation against Trump’s tariffs comes as container bookings into the US plummet 67% and shippers rush to move goods before the 90-day suspension expires. Experts warn that blanket tariffs—soon extending to pharmaceuticals and small shipments—are already choking supply chains, straining automotive and maritime sectors, and driving up costs for consumers.
On Wednesday 9 April 2025, the European Union announced that it would impose retaliatory tariffs of 25% on €21 billion (£18 billion) of US goods, in a direct response to recent US tariffs that have severely disrupted transatlantic trade.
The tariffs, agreed upon by all EU member states except Hungary, will target a broad range of products from almonds and soybeans to luxury yachts, with the first wave of duties taking effect on 15 April. The bulk of the tariffs will apply from 15 May, followed by additional measures beginning 1 December 2025.
In an official statement, the European Commission emphasised that it considered the US tariffs “unjustified and damaging,” causing economic harm not only to Europe but to global markets as well. The Commission has left open the possibility of suspending these countermeasures, should the US agree to a fair and balanced negotiated outcome.
This move comes after the United States imposed substantial tariffs on European steel and aluminium earlier this year, significantly affecting nearly 70% of EU exports to the US, valued at approximately €382 billion (£330 billion).
Hungary, the only EU member state opposing the tariffs, warned that such measures could exacerbate economic problems, raising consumer prices and damaging European interests further. Hungarian Foreign Minister Péter Szijjártó argued that negotiation rather than retaliation was the only productive path forward.
The EU’s tariffs strategically target US states governed by Republicans, impacting industries such as soybean farming in Louisiana and beef production in Kansas and Nebraska. This targeted approach aims to maximise political pressure domestically within the US.
Trump’s tariff whiplash adds to supply chain uncertainty Shortly after the EU’s decision, US President Donald Trump announced a temporary 90-day pause on higher tariffs for countries that had not retaliated, offering a baseline “lowered reciprocal tariff” of 10%. However, tariffs on Chinese goods have sharply escalated to 125%, further deepening global trade tensions.
Industry experts have expressed concerns over the broader implications of escalating tariff measures. Keiron Myall, Managing Director UK/IE at Customs Support Group, said the tariffs “could realistically have short to medium-term effects on the US economy” and warned that the automotive sector, particularly vulnerable due to its intricate supply chains, is likely to face “significant disruption and cost increases”.
“Complex customs regulations in a volatile geopolitical trade environment could result in delays and additional costs. The end result could be higher costs for US consumers as the tariffs are ultimately passed on,” he added.
Myall emphasised that Customs Support Group’s scenario mapping had already identified tariffs as the top global trade risk for 2025. He urged companies to consult customs specialists, review their HS classifications, and fully leverage free trade agreements.
“Outsourcing to a specialised organisation familiar with the nuances of customs clearance and digital navigation has never been more attractive,” he said.
De minimis crackdown, pharma threats and booking slump deepen crisis Lars Jensen, a leading expert in the container shipping industry, reported a dramatic drop in trade activity:
“Data from Vizion indicates that container bookings into the US have dropped a massive 67% in the past 7 days compared to the week prior, and export bookings are down 40%.” He warned that if these figures are accurate and the trend continues, “we will very shortly begin to see significant blank sailings from the carriers,” citing ONE’s recent suspension of its Pacific PN4 service as an early sign.
Jensen also flagged further developments: an executive order signed by Trump is set to impose, from 2 May, 90% tariffs or a $75 flat fee on small shipments to the US—previously exempt under de minimis rules. He also noted that pharmaceutical products, which are currently exempt, could be next in line for higher duties, following public statements from Trump.
“This adds yet another layer of uncertainty to supply chains, particularly in sectors previously shielded from tariff action,” he said..
De minimis rules currently allow low-value shipments (under $800) into the US without duty, a threshold widely used in e-commerce.
The tariff clock is ticking: Shippers flood ports ahead of July deadline In a more recent update, Jensen noted that Trump’s back-and-forth tariff policies are already disrupting global logistics.
“This creates exactly the kind of stop-and-go fluctuations which tend to be prone to create bottlenecks in the supply chain,” he said.
He explained that many shippers had paused bookings during the week of uncertainty, but with the 90-day suspension now in effect for non-China origins, “shippers will want to get this cargo moving whilst they have the opportunity to avoid the large tariffs”. He warned that this rush could bring forward the traditional peak season, potentially straining capacity and infrastructure.
“We should therefore expect that shippers from non-China origins might want to start the peak season essentially already now – or as fast as possible – in order to get their peak season loads moved prior to July 9 where the suspension expires,” he added.
He also warned that tariff suspensions in the past — such as with Mexico and Canada — were short-lived, with tariffs reinstated once the deadline expired. Adding to the uncertainty is a new US executive order aimed at bolstering domestic maritime industries. Jensen said this includes proposals for tariffs on Chinese port handling equipment, harbour maintenance fees on goods arriving via Canada and Mexico, and the establishment of a Maritime Security Trust Fund and Shipbuilding Incentives Programme. “It means that this does not come into effect just yet,” he noted, but the shift toward economic nationalism is clear.
The EU’s latest actions highlight the rapidly intensifying nature of global trade disputes and underline the urgent need for diplomatic negotiation to prevent further economic harm. European Commission President Ursula von der Leyen previously suggested a “zero-for-zero” tariff deal with the US, though the prospects for such a deal remain uncertain amid ongoing US policy shifts and escalating international tensions.
