EU responds to US steel and aluminium tariffs with countermeasures

The European Union on Wednesday announced retaliatory trade action with new duties on U.S. industrial and farm products, responding within hours to the Trump administration’s increase of tariffs on steel and aluminium imports to 25%.

The world’s biggest trading bloc was expecting the U.S. tariffs and prepared in advance, but the measures still place great strain on already tense trans-Atlantic relations. Only last month, Washington warned Europe that it would have to talke care of its own security in the future.

• First, the Commission will allow the suspension of existing 2018 and 2029 coubtermeasures against US to lapse on April 1.  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.

”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.”

Ursula von der Leyen, EU President

The EU measures will cover goods from the United States worth around 26 billion euros ($28 billion), and not just steel and aluminum products, but also textiles, home appliances and agricultural goods. Motorcycles, bourbon, peanut butter and jeans will also be hit, as they were during U.S. President Donald Trumps first term.

The decision by the Commission to restore the 2018 and 2020 countermeasures against the US will take immediate effect on 1 April.

Source:EU Commission

Read more here: EU statement