Commerce Department triggers EU retaliation under WTO dispute rules

On April 2, 2025, President Donald J. Trump declared a national emergency under the International Emergency Economic Powers Act of 1977 to impose “reciprocal” tariffs on European Union goods (White House fact sheet).

President Trump claimed the EU charges a 39% average tariff on U.S. goods, while the European Commission reports an actual average rate of 1% on U.S. products entering the EU market (Euronews tariff fact check).

In 2025, the imposed and scheduled tariffs are projected to raise federal revenues by $156.4 billion—0.51 percent of GDP—the largest tax increase since 1993, equivalent to nearly $1,200 per U.S. household (Tax Foundation).

The European Union has prepared €95 billion in counter-tariffs on U.S.-originating imports—including aircraft, automobiles, medical devices, IT equipment and industrial machinery (Trade Compliance Resource Hub).