BRUSSELS — European Union President Ursula von der Leyen has declared that the European bloc will not remain passive in the face of new U.S. tariffs on steel and aluminum, promising retaliatory action from the 27-member union. This development poses a notable threat to key American products such as bourbon, motorcycles, and denim.
In a statement responding to the recent measures announced by U.S. President Donald Trump, von der Leyen underscored that, “The EU will act to safeguard its economic interests.” She emphasized the negative impact of tariffs, stating, “Tariffs are taxes — detrimental to businesses and consumers alike.” She made it clear that “Unjustified tariffs on the EU will invoke strong and proportionate countermeasures.”
Drawing parallels to Trump’s previous tariffs during his initial term, the EU has indicated that if the new measures come into play on March 12, similar retaliatory tariffs might follow, as they had done in the past. Bernd Lange, the head of the trade committee in the European Parliament, cautioned that previous countermeasures, which had only been put on hold, could be reinstated swiftly. He remarked on the potential targets: “Motorcycles, jeans, peanut butter, bourbon, whiskey, and a multitude of products that also impact American exporters will be included.”
While it’s still uncertain what specific countermeasures will be enacted, officials from the EU Commission, which is responsible for negotiating trade agreements, hinted that they may focus on U.S. products that are particularly significant for Republican states. Germany’s Chancellor Olaf Scholz expressed the solidarity of the EU, stating that if the U.S. does not offer a different path, they will respond collectively. He noted that trade wars ultimately detract from prosperity on both sides.
Trump’s introduction of a 25% tax on imported steel and aluminum aims to alleviate the pressure on local manufacturers from stiff global competition, thereby enabling them to raise their prices. EU Commission Vice-President Maroš Šef?ovi? criticized the tariffs as “economically counterproductive,” especially regarding the intertwined production networks built through robust transatlantic trade.
Šef?ovi? affirmed the EU’s commitment to “protect our workers, businesses, and consumers,” while expressing a preference for dialogue over conflict: “We are ready to engage in negotiations and to find mutually beneficial solutions when feasible.”
According to EU estimates, trade volume between the EU and U.S. is approximately $1.5 trillion, constituting about 30% of global commerce, indicating that the stakes are high for both parties. Although the EU maintains a significant surplus in goods, this is counterbalanced by the U.S. surplus in services.
In terms of figures, the EU reported that trade of goods amounted to 851 billion euros ($878 billion) in 2023, resulting in a surplus of 156 billion euros ($161 billion). Conversely, the trade in services was valued at 688 billion euros ($710 billion), with the EU facing a deficit of 104 billion euros ($107 billion).
