The European Union has unveiled retaliatory measures in response to the US’s new steel and aluminum tariffs, which took effect at midnight. The EU considers these tariffs unjustified and harmful to global trade and has taken swift action to counter the impact on European businesses.
European Commission President Ursula von der Leyen criticized the US tariffs, calling them “taxes” that harm both businesses and consumers. She explained that these measures disrupt supply chains, create economic uncertainty, and risk raising prices in both Europe and the United States. The EU’s response targets a wide range of American products, including boats, bourbon, and Harley-Davidson motorbikes.
EU’s Two-Phase Retaliation Plan
The EU’s response will be carried out in two stages. On April 1, the EU will allow countermeasures imposed in 2018 and 2020 to expire. These earlier tariffs, which targeted US goods such as motorbikes and alcohol, were valued at approximately €8 billion.
In mid-April, the EU will introduce new tariffs targeting US exports worth up to €18 billion, effectively matching the scale of the tariffs imposed by the US. The total value of the EU’s countermeasures will reach €26 billion. A two-week consultation period, running until March 26, will allow trade representatives to weigh in on the proposed measures before they are finalized.
EU Open to Negotiations
Despite the firm response, the European Commission has expressed willingness to negotiate with the US to resolve the dispute. Ursula von der Leyen emphasized that tariffs are not in the interest of either economy, especially given current global uncertainties. EU Trade Commissioner Maroš Šefčovič has been tasked with resuming talks to seek a diplomatic resolution.
This latest round of tensions follows previous trade disputes over steel and aluminum tariffs dating back to 2018. Although the EU previously suspended retaliatory measures, the US’s renewed tariffs have reignited the conflict, prompting the EU to act swiftly.
The European Union hopes that continued dialogue will lead to a fair and mutually beneficial resolution to the ongoing trade dispute.