The European Union has announced a series of countermeasures in response to the United States’ recent decision to impose tariffs of up to 25% on European steel, aluminium, and related products. These countermeasures aim to protect European businesses, workers, and consumers from the economic impact of these trade restrictions.
Background: A Renewed Trade Dispute
The new US tariffs, which came into effect on March 12, target a wide range of European exports, including industrial steel and aluminium products, household goods, and machinery. This move mirrors a similar action taken by the Trump administration in 2018, which led the EU to introduce retaliatory tariffs on American imports such as bourbon, motorbikes, and jeans. Those measures had been suspended as part of negotiations, but with the latest US tariffs, the EU is reinstating and expanding its response.
The EU’s Two-Step Response
The European Commission has structured its countermeasures into two key actions:
- Reactivating Suspended Tariffs: The EU will allow the suspension of its 2018 and 2020 countermeasures to lapse on April 1, effectively reimposing tariffs on American products worth €8 billion.
- Introducing Additional Tariffs: In reaction to the expanded scope of US tariffs, the EU will apply additional levies on US goods amounting to approximately €18 billion. The list of affected products is currently being finalized in consultation with EU member states and stakeholders, with implementation expected by mid-April.
Impact on Trade and Consumers
With these countermeasures, the EU aims to match the economic impact of the US tariffs, which affect €26 billion worth of European exports. European Commission President Ursula von der Leyen emphasized the adverse effects of tariffs on both economies, stating, “Tariffs are taxes. They are bad for business, and even worse for consumers.”
As the situation develops, the EU remains open to negotiations with the US to seek a long-term resolution that avoids further economic strain on industries and consumers. However, the Commission has made it clear that it will take firm action to defend European economic interests if a compromise is not reached.
Next Steps
The EU’s next steps include:
- Completing stakeholder consultations by March 26.
- Finalizing the list of additional targeted US products.
- Implementing the expanded countermeasures by mid-April.
This ongoing trade dispute highlights the challenges of transatlantic commerce and the need for diplomatic solutions. As both economies navigate geopolitical uncertainties, a balanced approach will be crucial in ensuring fair and sustainable trade practices.
Please see here the entire list of goods for which the suspension will expire. This concerns the goods in Annex I and II: UITVOERINGSVERORDENING (EU) 2018/724
