Trade tensions deepen: EU set to respond as U.S. and China raise the stakes

As global tariff tensions reach new heights, the European Union is preparing its first round of countermeasures in response to the United States’ sweeping new trade duties. This follows a dramatic escalation overnight, with the U.S. imposing 104% tariffs on Chinese goods and China retaliating with an 84% tariff on U.S. imports

For UK and EU-based importers, the ripple effects are becoming harder to ignore. While the UK has so far opted not to introduce countermeasures, the EU is poised to take action - initially targeting steel and aluminium but potentially broadening its response if trade tensions continue to spiral.

For manufacturers and retailers reliant on transatlantic or Far East trade, this is a critical moment for reassessing risk, cost, and resilience across the supply chain.

Today’s developments mark a notable intensification of the U.S. administration’s trade policy. Alongside the headline 104% tariff on Chinese imports, Washington also confirmed a significant increase in de minimis related fees for shipments from China valued under $800 - an eCommerce-sensitive threshold. These moves are expected to have far-reaching implications for cross-border B2C transactions and fast-moving consumer goods flows.

China’s retaliation came swiftly, with its finance ministry announcing a new combined 84% tariff on U.S. goods and a clampdown on exports of critical minerals. At the same time, Beijing has reportedly instructed major state-owned banks to limit purchases of U.S. dollars in an effort to stabilise the yuan. In parallel, China has warned the WTO that the U.S. tariffs could further destabilise already fragile global trade systems.

What it means for UK and EU supply chains

Although the UK, along with Australia and several Southeast Asian nations, has not yet launched a formal response, European pressure is mounting. The U.S. rejection of the EU proposal for a zero-tariff arrangement on autos and industrial goods leaves room for broader retaliatory moves.

Carriers are already reacting to softening demand. According to eeSea, 49 blanked sailings are forecast on the Far East–North America route in April, with 36 more already scheduled for May. Ocean freight bookings from China into the U.S. have fallen sharply, down 67% in a week, while export bookings from China are also down 40%, triggering early service suspensions by major alliances.

Logicall is monitoring capacity shifts closely, as knock-on effects may soon be felt on Europe-bound services too.

Prepare, don’t pause

With tariff regimes and political responses evolving by the day, businesses across the UK and Europe face a familiar yet intensified challenge: how to plan confidently amid growing unpredictability.

Logicall recommends a proactive approach; reviewing current exposure and leveraging customs regimes where available and appropriate, to build flexibility into sourcing and routing strategies.

If your organisation is affected by recent developments, or if you simply want to stay ahead of what’s coming, our team is ready to help. We offer detailed supply chain impact assessments, scenario planning, and tactical advice to help you navigate whatever comes next.