The European Commission has announced retaliatory measures against US imports in response to the United States' imposition of steep tariffs on European steel and aluminium. The US tariffs, which took effect at 00:01 local time on Wednesday, impose a 25% duty on these imports, a move that has drawn sharp criticism from European leaders.
EU Expresses Regret, Calls for Dialogue
European Commission President Ursula von der Leyen expressed deep regret over the US decision, emphasizing the importance of transatlantic trade relations. "The trade relationship between the European Union and the US is the largest in the world. It has brought prosperity and security to millions of people and created millions of jobs on both sides of the Atlantic," she said. "Tariffs are taxes. They are bad for business and even worse for consumers. These tariffs are disrupting supply chains and creating economic uncertainty."
Von der Leyen reiterated the EU's willingness to engage in constructive dialogue to resolve the dispute. "We are ready to engage in meaningful discussions. I have entrusted Trade Commissioner Maroš Šefčovič to resume talks with the US to explore better solutions," she added. Earlier this week, Šefčovič noted that the US had not been actively engaging with the EU, but European officials hope that the threat of retaliation will compel Washington to return to the negotiating table.
EU’s Two-Step Retaliation Plan
The European Commission has outlined a two-step response to the US tariffs. First, it will allow the suspension of existing countermeasures from 2018 and 2020 to lapse on April 1. These measures, which target a range of US products, were initially implemented in response to US tariffs affecting €8 billion worth of EU steel and aluminium exports. Second, the Commission has proposed new countermeasures on US exports in response to the latest tariffs, which impact over €18 billion of EU exports. These measures are expected to take effect by mid-April, following consultations with EU member states and stakeholders.
In total, the EU’s countermeasures could apply to US goods worth up to €26 billion, matching the economic scope of the US tariffs. Von der Leyen estimated that the US tariffs affect $28 billion in trade, and the EU’s response is designed to be proportionate.
Global Reactions and Historical Context
The US tariffs, implemented by President Donald Trump, have sparked concerns of a renewed trade war. This is not the first time Trump has imposed such measures; during his first presidency in 2018, he levied similar tariffs on steel and aluminium, prompting the EU to respond with its own duties. Those EU measures were temporarily suspended but are set to expire at the end of March.
The latest US tariffs apply to several key trading partners, including Australia, Canada, Japan, China, Brazil, and Mexico. The UK government has also expressed disappointment but has not yet announced retaliatory actions. "I will continue to engage closely and productively with the US to press the case for UK business interests. We will keep all options on the table and won't hesitate to respond in the national interest," said Business and Trade Secretary Jonathan Reynolds in a statement.
As tensions escalate, the global trade landscape faces renewed uncertainty, with stakeholders on both sides of the Atlantic urging diplomacy to avoid further economic disruption