Trade tensions between the United States and the European Union (EU) are escalating toward a full-blown confrontation. The EU has reportedly signaled it will impose hefty retaliatory tariffs starting on the 7th of next month in response to tariff threats from the Donald Trump administration.
On the 19th (local time), The Wall Street Journal (WSJ) reported, citing remarks by EU European Commission Spokesperson Olof Gill, that the EU could implement a previously shelved package of retaliatory tariffs against the United States as early as the 7th of next month. The tariff targets are U.S. goods worth about 93 billion euros (about 160 trillion won).
EU member states already approved the plan in July last year. However, they delayed implementation by six months to conclude trade talks with the United States. The grace measure will automatically end on the 6th of next month.
Gill, the Spokesperson, told the WSJ, "The Commission has the option to extend the grace period, but if it is not extended, it will lapse." The assessment is that this effectively signaled a warning to drop a tariff bomb immediately if talks make no progress.
Tensions between the EU and the United States flared after U.S. President Donald Trump raised the issue of purchasing Greenland in earnest. President Trump said he would retaliate with tariffs against eight European countries that opposed a U.S. move to annex Greenland. The United States plans to impose a 10% tariff starting on the 1st of next month and raise the rate to 25% starting in June.
European countries defined this as a violation of sovereignty and an unfair form of economic pressure. The EU is preparing to activate a strong response system. At an emergency meeting in Brussels, Belgium, on the 18th, triggering the "anti-coercion instrument (ACI)" was placed as the core agenda item. The measure is a powerful tool to restrict trade against countries that economically threaten the EU or its member states. With wide-ranging retaliation possible—such as blocking access to financial markets or restricting intellectual property rights—it has earned the nickname "trade bazooka." Although it has never been used since its introduction in 2023, the likelihood of deployment now is higher than ever.
Unlike during past trade disputes, the EU is clearly in no mood to back down this time. Trump's relentless trade pressure has fueled public sentiment within Europe that the bloc should speak with its own voice. In particular, there is strong resistance among member states to tying geopolitical issues like Greenland to trade tariffs. The European Commission is said to be closely watching U.S. moves and has completed final checks for implementing tariffs.
International trade experts worry the situation could disrupt global supply chains across the board. If the EU actually imposes tariffs on the United States, Washington is highly likely to pursue additional retaliation. If the two sides fail to find a dramatic compromise, a full-scale trade war vortex appears likely to begin in early next month.