BRUSSELS — European Union leader Ursula von der Leyen declared on Tuesday that the U.S. tariffs on steel and aluminum “will not go unanswered,” promising that such actions will elicit strong countermeasures from the EU, which consists of 27 member nations. This warning indicates potential repercussions for notable U.S. industries, including those producing bourbon, jeans, and motorcycles.
“The EU will act to protect its economic interests,” von der Leyen stated in her remarks following U.S. President Donald Trump’s announcement of tariffs on steel and aluminum. She characterized tariffs as burdensome taxes that adversely affect businesses and consumers alike, affirming that “unjustified tariffs on the EU will prompt firm and proportionate countermeasures.” The EU’s trade minister convened an urgent video meeting on the bloc’s response on Tuesday.
“It’s essential that we maintain unity. Challenging times demand complete solidarity,” emphasized Prime Minister Donald Tusk of Poland, the current holder of the EU presidency. The European Union is considering targeting a variety of U.S. exports, ranging from motorcycles to whiskey.
Similar to the tariffs imposed during the earlier phase of Trump’s presidency, the forthcoming EU countermeasures could mirror those utilized for retaliation in the past, slated for enforcement on March 12. Bernd Lange, chair of the European Parliament’s trade committee, alerted that previous retaliatory measures were merely put on hold and could easily be reinstated if needed. He noted that items such as motorcycles, jeans, peanut butter, bourbon, whiskey, and an array of other products could face tariffs, impacting American exporters as well.
The EU Commission, which handles trade relations for the bloc, has not yet disclosed the specific countermeasures to be applied. Nevertheless, officials and market analysts anticipate that the EU’s approach will involve targeting states that are historically Republican and are significant exporters to the EU.
In Germany, Chancellor Olaf Scholz addressed parliament, asserting that “if the U.S. compels us, then the European Union will respond in unity,” adding that trade wars invariably diminish prosperity for both involved parties.
European steel manufacturers are gearing up for possible downturns amid this trade conflict. Henrik Adam, president of the Eurofer European steel association, shared concerns about the intensified strain on the European steel sector, describing the current market conditions as “dire.” He estimated that the EU could potentially lose around 3.7 million tons of steel exports, with the U.S. representing the second-largest market for EU steel, accounting for 16% of total exports.
Trump’s tariffs impose a 25% tax on foreign steel and aluminum with the intention of providing domestic manufacturers relief from competitive pressures in the global market, which would allow them to raise their prices. EU Commission Vice President Maroš Šef?ovi? criticized the tariffs as “economically counterproductive,” emphasizing the depth of interconnected production chains fostered by transatlantic trade and investment relations.
“We will safeguard our workers, businesses, and consumers,” Šef?ovi? pledged, though he reiterated that this situation is not the EU’s desired outcome. He expressed a commitment to maintaining constructive dialogue and a willingness to negotiate to reach mutually beneficial agreements.
The EU estimates that the annual trade volume between both parties nears $1.5 trillion, which makes up about 30% of global trade. “The stakes are high for both sides,” he communicated to the EU legislature.
Despite maintaining a significant export surplus in goods, the EU notes that this is partially balanced out by the U.S. surplus in service trades. In 2023, the EU reported that trade in goods amounted to 851 billion euros ($878 billion), generating a trade surplus of 156 billion euros ($161 billion) for the region, while trade in services totaled 688 billion euros ($710 billion) with a service deficit of 104 billion euros ($107 billion).
