The European Commission has announced countermeasures on the United States' tariffs on European Union imports. The Commission says the EU's countermeasures could apply to US exports worth up to €26 billion.
Just over a month after US President Donald Trump announced the US would impose 25% tariffs on imports of steel, aluminium and derivative products, and the day these came into effect, the European Commission is retaliating as promised. Commission President Ursula von der Leyen confirmed in a statement on Wednesday that the EU is responding to these "unjustified" tariffs with countermeasures.
"These [the US'] tariffs are disrupting supply chains. They bring uncertainty for the economy," said von der Leyen. "Jobs are at stake. Prices will go up. In Europe and in the United States. The European Union must act to protect consumers and businesses. The countermeasures we take today are strong but proportionate."
The EU's response is based on a two-step approach:
- Firstly, the Commission will suspend the lapsing of existing 2018 and 2020 countermeasures against the US on 1 April. These targeted a range of US products "in response to the economic harm inflicted on €8 billion worth of EU steel and aluminium exports." Their suspension expires on 31 March and will not be extended.
- Secondly, the Commission is putting forward a package of new countermeasures on US exports in response to the latest US tariffs. These will come into force by mid-April.
As part of the second step, a two-week stakeholder consultation will run until 26 March looking at a proposed list of targeted products. It has mentioned agricultural and industrial products ranging from textiles, leather and household appliances to nuts, eggs, poultry and beef.
Based on the collected input, the Commission will finalise its proposal for the adoption of countermeasures, and consult the Member States. Once this process is completed, the Commission aims to have the legal act imposing the countermeasures in place by mid-April.
"As the US is applying tariffs worth $28 billion, we are responding with countermeasures worth €26 billion. This matches the economic scope of the US tariffs," von der Leyen said. The EU's countermeasures will be fully in place as of 13 April.
Finding better solutions
The statement added that, in the meantime, the EU remains ready to work with the US administration to find a "negotiated solution." If such a solution is found, the countermeasures can be reversed "at any time". Trade Commissioner Maroš Šefčovič has been tasked to resume talks to explore better solutions with the US.
The US President had already taxed steel and aluminium imports during his first term (2017-2021). However, this new tax, which came into effect overnight, is intended to be "without exception and without exemption".
Meanwhile, Trump doubled his planned tariff on all steel and aluminium products coming into the US from Canada on Tuesday, bringing the total to 50%. This came in response to the province of Ontario placing a 25% tariff on electricity coming into the US.
