BRUSSELS — The European Union’s executive body has announced its commitment to “take decisive and immediate actions” in response to U.S. President Donald Trump’s newly imposed tariffs on steel and aluminum.
The European Commission remarked that Trump’s strategy of implementing a “reciprocal” trade policy is misguided.
“The EU will firmly address any unjustifiable barriers to free and fair trade and will counter any tariffs targeting legitimate and non-discriminatory policies,” the Commission stated. “The EU is dedicated to safeguarding European businesses, workers, and consumers from unfair tariff measures.”
As the entity responsible for trade negotiations for the bloc of 27 nations, the Commission emphasized that the EU maintains some of the lowest tariffs globally and sees no valid rationale for the increased tariffs imposed by the U.S. on its goods.
“Tariffs function as taxes. When tariffs are enforced, the U.S. is essentially taxing its own citizens, leading to higher costs for businesses, hindering economic growth, and contributing to inflation,” the statement continued. “Such tariffs increase economic instability and disrupt the smooth operation and integration of international markets.”
Earlier in the week, the Commission made it clear that the U.S. tariffs on steel and aluminum would not go without a response.
The specific counteractions have yet to be clarified. During his first term, Trump had imposed similar tariffs on steel and aluminum sourced from the EU, which angered European nations and other allies. In retaliation, the EU introduced counter-tariffs at that time, impacting items such as U.S.-made motorcycles, bourbon, peanut butter, and jeans, among others.
According to estimates, the annual trade volume between the EU and the U.S. stands around $1.5 trillion, accounting for approximately 30% of global trade. The EU enjoys a notable surplus in goods exports; however, this is somewhat balanced out by a trade surplus for the U.S. in services.
In 2023, trade in goods reached a value of 851 billion euros ($878 billion), yielding a trade surplus of 156 billion euros ($161 billion) for the EU. Conversely, trade in services amounted to 688 billion euros ($710 billion), resulting in a trade deficit of 104 billion euros ($107 billion) for the EU.
