The European Union is preparing a response to Donald Trump's new tariffs, but instead of a direct retaliation, Brussels is considering a more strategic approach. The US president imposed a 20 percent tariff on all EU imports, following earlier tariffs on automotive imports.

Brussels is contemplating tariffs that would specifically target products from Republican-leaning states, aiming to impact exports from America's "red states." Internal documents suggest levies of up to 25 percent could be applied to goods like ice cream, cigarettes, and soybeans, which are heavily reliant on exports to Europe.

The European Commission is considering tariffs on a wide array of exports, estimated to be worth approximately €22.1 billion based on 2024 import data. These include duties on steel, meat, white chocolate, and polyethylene, with further tariffs planned for almonds and soybeans. Iron and orange juice are also potential targets.

Trade experts in Brussels are focusing on industries and regions where Trump has strong support. Analysis of 2024 trade data indicates that around $13.5 billion of exports from red states would be affected. Soybeans, a major export, are a key target, with a significant portion originating from Louisiana.

Other products targeted include beef from Kansas and Nebraska, car parts from Michigan, ice cream from Arizona, and various goods from states like South Carolina, Florida, North Carolina, Georgia, and Alabama. Electric blankets, washing machines, and pasta are also on the list.

Despite significant responses from other countries, Trump has not indicated any willingness to back down from his tariff policies. When the EU proposed a "zero-for-zero" tariff scheme on industrial goods, Trump rejected it, instead demanding that the EU purchase a substantial amount of US energy products to reduce the trade deficit.