Trade conflict EU postpones retaliation for new US tariffs
The EU is postponing the planned reintroduction of retaliatory tariffs on US goods by two weeks. The reaction to the tariffs on steel and aluminum imports imposed by US President Donald Trump will not take place until mid-April instead of the beginning of April.
20.03.2025, 14:28
20.03.2025, 14:56
SDA
According to the European Commission, the move is intended to create additional space for talks with the US government. The EU remains ready to enter into a constructive dialog with the USA in order to find a solution that avoids unnecessary damage to both economies, it said in a statement.
Tariffs on bourbon whiskey and motorcycles
The reintroduction of the currently suspended tariffs would apply to US products such as bourbon whiskey, game consoles, motorcycles, boats and peanut butter. Some of the additional tariffs would be as high as 50 percent - for example on Harley-Davidson motorcycles built in the USA and Jack Daniel's whiskey.
Further countermeasures are still being drawn up and are also due to be activated in mid-April. They will affect companies that sell American agricultural products such as poultry, beef, certain seafood, nuts, eggs, dairy products, sugar and vegetables to the EU.
In addition, there are to be extra EU tariffs on other industrial products such as steel and aluminum products, textiles, leather goods, household appliances, tools, plastics and wood products.
Goods worth 26 billion euros affected
According to the Brussels authority, the new US tariffs of 25 percent will affect exports from the community of states 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 around a week ago.
The EU countermeasures are intended to compensate for this. According to the Commission, US goods exports worth up to 26 billion euros would be affected by the planned EU reactions.
Trade dispute during Trump's first term in office
US President Trump had already imposed special tariffs on imports of steel and aluminum products in 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. These are expected to take effect on April 2. In doing so, he wants to strengthen the USA as a production location and reduce trade deficits.
