How the EU-US trade war could hit your wallet
21 March 2025
What do your uncle's Harley Davidson, your Levi's jeans, and your Jack Daniel's whiskey have in common? They're all about to get more expensive. The European Commission has announced it will hit back at the Donald Trump administration's tariffs on steel and aluminium. Starting 1 April, tariffs are being reintroduced on classic American goods like jeans, whiskey, and motorbikes.
By mid-April, steel, textiles, leather goods, and home appliances will be hit by tariffs, meaning higher prices on everything from kitchenware to clothing and construction materials. In 2018, the last time the EU imposed tariffs on American whiskey, Jack Daniel's parent company, Brown-Forman, increased prices in Europe by about 10%. Similar effects were seen in motorcycles and food imports, as businesses passed extra costs onto consumers.
The European Central Bank has already warned that ongoing trade disruptions could slow economic growth across the eurozone. US consumers will likely face similar price hikes. With billions in transatlantic trade already impacted, rising costs, fewer product choices, and economic uncertainty could become a reality.
 | Thibault Krause While tariffs are meant to pressure Washington, they come at a cost that will become increasingly visible on European supermarket shelves. The US is the dominant global economic power, and Europe will not manage to fully replace it as a trade partner. But that doesn't mean Trump has unlimited bargaining power. EU tariffs target industries crucial to his voter base, especially red and swing states. Europe, including the UK, should see Trump's trade policies as an opportunity to be less reliant on the US by deepening trade ties with Canada, Mexico, India, and beyond – especially to start compensating for the next four years in advance. |
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