Photo by Yoav Aziz on Unsplash
The EU Commission says it regrets the US decision to impose tariffs against European companies.
The EC has branded the move as unjustified, disruptive to transatlantic trade and harmful to businesses and consumers, often resulting in higher prices.
The Commission says its response is carefully calibrated and based on a two-step approach.
- First, the Commission will allow the suspension of existing counter measures against the US to lapse on 1 April. These countermeasures target a range of US products that respond to the economic harm done on €8 billion of EU steel and aluminium exports.
- Second, in response to new US tariffs affecting more than €18 billion of EU exports, the Commission is putting forward a package of new countermeasures on US exports. They will come into force by mid-April, following consultation of Member States and stakeholders.
In total, the EU countermeasures could apply to US goods exports worth up to €26 billion, matching the economic scope of the US tariffs.
In the meantime, the EU says it remains ready to work with the US administration to find a negotiated solution.
On Wednesday, President of the European Commission, Ursula von der Leyen, said: “The trade relations between the European Union and the US are the biggest in the world.”
“They have brought prosperity and security to millions of people, and trade has created millions of jobs on both sides of the Atlantic. As of this morning the United States is applying a 25% tariff on imports of steel and aluminium. We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. In Europe and in the United States.”
“The European Union must act to protect consumers and business. The countermeasures we take today are strong but proportionate. As the US are applying tariffs worth 28 billion dollars, we are responding with countermeasures worth €26 billion. This matches the economic scope of the US tariffs. Our countermeasures will be introduced in two steps. Starting with 1 April and fully in place as of 13 April. In the meantime, we will always remain open to negotiation.”
“We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs. We are ready to engage in meaningful dialogue. I have entrusted Trade Commissioner Maroš Šefčovič to resume his talks to explore better solutions with the US,” she added.
The decision by the Commission to restore the 2018 and 2020 countermeasures against the US will take immediate effect on 1 April.
In June 2018, the first US administration under President Trump introduced tariffs on €6.4 billion (€8 billion based on 2024 flows and values) of European steel and aluminium exports. In January 2020, additional tariffs, affecting around €40 million of EU exports of certain derivative steel and aluminium products, followed.
In response, in June 2018, the EU introduced its countermeasures on €2.8 billion of US exports to the EU (a similar EU response followed the second set of US tariffs in 2020).
The remaining rebalancing measures, affecting exports valued up to €3.6 billion were scheduled to enter into force on 1 June 2021. Following discussions with the US on tariff-based quota system for EU exporters, the EU suspended these measures until 31 March 2025 in order to give space for the parties to work out a longer-term solution.
On 10 February 2025, the US announced that it would impose 25% tariffs on imports of steel and aluminium and derivative products.
von der Leyen immediately warned that such tariffs are bad for business, worse for consumers and would trigger a firm and proportionate European response.
The US tariffs of up to 25% will apply on industrial-grade steel and aluminium, other steel and aluminium semifinished and finished products, and also their derivative commercial products (from machinery parts to knitting needles), covering up to €26 billion worth of EU exports to the US.
