EU to launch €26b countermeasures against Trump’s tariffs

The European Union will impose €26 billion in countermeasures against US steel tariffs starting April 1.

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The European Union has unveiled plans to impose countermeasures on US goods worth €26 billion, responding to the US administration's recently introduced 25% tariffs on steel and aluminium imports.

European Commission President Ursula von der Leyen condemned the US tariffs, calling them "unjustified" and warning that they would disrupt global supply chains. Von der Leyen stated that tariffs, which she described as "taxes," would harm businesses and consumers on both sides of the Atlantic.

“These 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," she said.

The US tariffs, which began taking effect today, target steel and aluminium imports from all trading partners, including the European Union. The European Commission has now announced its intention to retaliate by imposing tariffs on an equivalent value of US goods, estimated at around $28 billion.

The EU's response will come in two stages. The first step will see the reinstatement of countermeasures that were previously suspended in 2018 and 2020.

These measures, effective from April 1, will target a range of US products, including steel, aluminium, home appliances, and agricultural items like poultry and beef. By mid-April, a second round of tariffs will be implemented, fully covering the €26 billion target.

Maros Sefcovic, the EU’s trade commissioner, indicated that Europe remained open to negotiations with the US but would not tolerate “unjustified tariffs.” He added, “We should be making this great relationship stronger, not weaker.”

The EU’s decision to retaliate comes amid growing concerns about the impact of the US tariffs, which are intended to protect American steel industries from international competition. However, critics argue that these tariffs could lead to increased costs for consumers, both in the US and Europe.

The European Union’s countermeasures are expected to have a significant impact on a range of US exports, including steel, motorbikes, boats, and even bourbon. However, von der Leyen stressed that the EU is still willing to engage in discussions to find a mutually beneficial solution.

“We are ready to engage in meaningful dialogue,” she said. “But these unjustified trade restrictions will not go unanswered.”

The US tariffs have sparked an intensifying trade war between the US and its allies, including the EU, Japan, and Canada. Despite the heightened tensions, the EU is determined to protect its industries and maintain fair trade practices.

The European Commission will now initiate a two-week consultation with stakeholders to ensure the appropriate products are targeted by the countermeasures. Unless the situation changes, the tariffs will be fully implemented by mid-April.