From April EU announces retaliation for new US tariffs

The EU has announced that it will react decisively to the new US tariffs on steel and aluminum. The EU extra tariffs are to apply from April.

The EU has announced its immediate response to the US tariffs on steel and aluminum imports that came into force on Wednesday. The European Commission announced this morning that, as a first step, extra EU tariffs on imports of American products such as bourbon whiskey, jeans, motorcycles, boats and peanut butter will be imposed again from April.

Further countermeasures would then follow after coordination with the EU member states in mid-April, it was said. According to the EU Commission, the new US tariffs of 25 percent will affect EU exports with a total value of 26 billion euros, which corresponds to around five percent of the EU's total goods exports to the USA.

"Based on current import flows, this will result in US importers having to pay up to six billion euros in additional import duties," it said. The EU countermeasures are now intended to compensate for this.

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According to the Commission, US goods exports worth 26 billion euros would be affected by the planned EU reactions. The first step would involve goods worth around 8 billion euros, followed by goods worth around 16 billion euros in the second step.

"The European Union must act to protect consumers and businesses," explained EU Commission President Ursula von der Leyen. The countermeasures being taken are strong but proportionate.

The German leader sharply criticized US President Donald Trump's tariff decision. "These tariffs are disrupting supply chains. They create uncertainty for the economy. Jobs are at stake. Prices will rise - in Europe and in the United States," she said.

EU sees scope for negotiations

At the same time, von der Leyen emphasized that she was still willing to work with the US government on a negotiated solution. "We are firmly convinced that in a world full of geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs," she said. She had instructed Trade Commissioner Maroš Šefčovič to resume his talks with the United States in order to find better solutions.

US President Donald Trump had already imposed special tariffs on the import of steel and aluminum products during his first term of office from 2017 to 2021, justifying this "with national security interests". At the time, the EU responded with retaliatory tariffs on US products such as bourbon whiskey, motorcycles and jeans.

However, in the fall of 2021, the EU then reached a standstill agreement with the administration of Trump's Democratic successor Joe Biden, which resulted in the tariffs being largely suspended. Following his re-election, however, Trump is now back on a confrontational course. He has also announced his intention to impose new tariffs on cars and other goods from the EU.