EU Announces Retaliatory Tariffs on U.S. Imports Following Steel and Aluminum Tariff Hike
The European Union announced on Wednesday that it will impose retaliatory tariffs on U.S. industrial and agricultural products starting April 1. The decision follows the Trump administration’s move to raise tariffs on all steel and aluminum imports to 25%, escalating trade tensions between the two economic powers.
The new EU tariffs will apply to U.S. exports worth approximately 26 billion euros ($28 billion) and will impact not only steel and aluminum but also textiles, home appliances, and agricultural goods. Items such as motorcycles, bourbon, peanut butter, and jeans, which faced tariffs during Trump’s first term, will be targeted again.
The United Kingdom, now outside the EU, has opted not to impose similar countermeasures but criticized the U.S. decision, calling the tariffs "disappointing."
European Commission President Ursula von der Leyen emphasized that the EU remains open to negotiations but must respond to Washington’s trade policies. "As the U.S. applies tariffs worth $28 billion, we are responding with countermeasures worth 26 billion euros," she stated. She warned that tariffs would increase costs and disrupt supply chains, harming businesses and consumers on both sides of the Atlantic.
EU Trade Commissioner Maroš Šefčovič, who recently met with U.S. officials in Washington in an effort to prevent the escalation, expressed regret that diplomatic efforts had not succeeded. "You need both hands to clap," he said, emphasizing that cooperation from the U.S. was necessary to avoid trade disruptions.
The European steel industry is expected to be significantly affected, with potential losses of up to 3.7 million tons of steel exports. Henrik Adam, president of the Eurofer steel association, warned that the measures would worsen conditions for European steel producers, as the U.S. represents 16% of total EU steel exports.
The EU and the U.S. share a substantial trade relationship, with annual trade volume estimated at $1.5 trillion, making up approximately 30% of global trade. While the EU has a trade surplus in goods, the U.S. maintains a surplus in services. In 2023, EU-U.S. trade in goods totaled 851 billion euros ($878 billion), with a trade surplus of 156 billion euros ($161 billion) in favor of the EU. Meanwhile, trade in services reached 688 billion euros ($710 billion), with a U.S. surplus of 104 billion euros ($107 billion).
The U.K. is seeking to maintain strong trade relations with the U.S. and is actively negotiating an economic agreement to prevent further tariffs. British Business Secretary Jonathan Reynolds stated that all options remain on the table and emphasized the government’s commitment to protecting U.K. business interests.
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