The European Union announced on Wednesday that it would impose retaliatory tariffs on US imports in response to Donald Trump’s decision to implement a 25% tariff on all steel and aluminum imports.
The EU’s countermeasures, effective from April 1, target a range of industrial and agricultural products. The tariffs will apply to US goods worth approximately 26 billion euros ($28 billion), including steel, aluminum, textiles, home appliances, and agricultural products.
“As the US is imposing tariffs worth $28 billion, we are responding with countermeasures valued at 26 billion euros,” European Commission President Ursula von der Leyen stated, according to the Associated Press. The European Commission, which oversees trade policy for the 27-member bloc, manages such disputes on their behalf.
Von der Leyen emphasized the EU’s openness to negotiation, stating, “We firmly believe that, in a world facing geopolitical and economic uncertainties, burdening our economies with tariffs is not in our common interest.”
In addition to steel and aluminum, the EU’s tariffs will affect a wide range of US exports, including textiles, leather goods, home appliances, household tools, plastics, and wood. Agricultural products such as poultry, beef, seafood, nuts, eggs, sugar, and vegetables will also be impacted.
The EU had anticipated the US tariffs and prepared countermeasures in advance. However, the trade dispute further strains transatlantic relations, which have already been tense. Just last month, Washington warned Europe that it would need to take greater responsibility for its own security in the future.
Trump Defends Tariffs, Von der Leyen Calls Them ‘Bad for Business’
While former US President Donald Trump argued that the tariffs would boost domestic manufacturing jobs, von der Leyen warned that they would instead put jobs at risk and drive up prices on both sides of the Atlantic.
“We deeply regret this measure. Tariffs are taxes. They are bad for business and even worse for consumers. These tariffs are disrupting supply chains and creating economic uncertainty,” she said.
This is not the first time Trump has imposed such tariffs. During his first term, he implemented similar duties on EU steel and aluminum, sparking European retaliation. At the time, the EU responded by raising tariffs on American-made motorcycles, bourbon, peanut butter, and jeans, among other products.
Trade Relations Between the US and EU
The EU estimates that trade between the two economies amounts to approximately $1.5 trillion annually, accounting for about 30% of global trade. While the EU maintains a trade surplus in goods, it argues that this is partially offset by the US surplus in services.
In 2023, the EU reported trade in goods worth 851 billion euros ($878 billion), with a 156 billion euro ($161 billion) surplus. Meanwhile, trade in services totaled 688 billion euros ($710 billion), with the EU running a 104 billion euro ($107 billion) deficit.
