BRUSSELS — In swift retaliation against the U.S. government’s decision to hike tariffs on all steel and aluminum imports to 25%, the European Union on Wednesday unveiled plans for new import duties on a range of American industrial and agricultural products. This exchange escalates tensions within the already strained trade relationship across the Atlantic. Experts anticipated the U.S. move, allowing the EU to prepare its response in advance. However, the new tariffs still pose serious threats to economic relations between the two regions. Last month, the U.S. had signaled that Europe might be left to handle its security independently in the coming times.
The EU’s countermeasures target a variety of U.S. goods totalizing about 26 billion euros ($28 billion) in value. The list extends beyond just steel and aluminum, involving textiles, home appliances, and agricultural items. Familiar consumer products like motorcycles, bourbon, peanut butter, and jeans will also face increased tariffs, similar to measures taken during Donald Trump’s initial term as U.S. President.
These European tariffs are strategically designed to put pressure on key economic areas in the U.S., focusing primarily on regions with a strong Republican presence. This includes tariffs on soybeans in House Speaker Mike Johnson’s Louisiana, as well as on beef and poultry from Kansas and Nebraska. Other targets include produce from Alabama, Georgia, and Virginia.
European Commission President Ursula von der Leyen emphasized the EU’s willingness to negotiate despite these actions. She stated, “As the U.S. is imposing tariffs worth 28 billion dollars, we’re reciprocating with our measures totaling 26 billion euros.” She added that in an increasingly unstable global market, imposing tariffs would only harm both economies.
The EU’s response entails duties on not only steel and aluminum but extends to textiles, leather, appliances, plastics, and other materials. A significant array of agricultural products, spanning poultry, beef, seafood, nuts, sugar, and vegetables, will also be affected.
President Trump previously argued that these tariffs are a strategy to boost U.S. manufacturing jobs. However, von der Leyen countered that this measure risks jobs on both sides of the Atlantic and will likely lead to increased consumer prices.
The American Chamber of Commerce to the EU expressed concern, suggesting that the ongoing tariffs would negatively impact jobs and prosperity both in Europe and the U.S. They urged both parties to de-escalate and pursue a diplomatic solution quickly.
The current scenario mirrors the trade conflict during Trump’s initial presidency when similar tariffs and subsequent EU countermeasures were introduced. Initially, the EU plans to reinstate previously used “rebalancing measures” starting April 1, which were held during the Biden administration. This will be followed on April 13 by supplementary tariffs affecting an estimated 18 billion euros ($19.6 billion) in U.S. goods entering the EU.
Last month, EU Trade Commissioner Maroš Šef?ovi? visited Washington, seeking to negotiate against these tariffs, stressing during discussions that the EU should not be viewed as the instigator. He pointed out, “For cooperation and resolution, there needs to be active participation from both sides,” during media interaction at the European Parliament in Strasbourg.
Faced with these impacts, European steel manufacturers are anticipating a potential loss of up to 3.7 million tons in steel exports, as reported by Eurofer—the association representing the European steel industry. Noteworthy is that the U.S. ranks as the second-largest market for EU steel, comprising about 16% of its overall steel exports.
Trade between the EU and the U.S. remains substantial, with an annual volume of approximately $1.5 trillion, constituting about 30% of global trade. Despite the EU maintaining an advantage in goods exports, the trade balance is somewhat countered by a U.S. surplus in services.
Meanwhile, the UK, now outside the EU, declares its intent not to enact similar trade retaliation against the U.S. UK Business Secretary Jonathan Reynolds remarked on continued positive engagement with Washington aimed at protecting UK economic interests. Although reluctant, he did not exclude the implementation of future tariffs, maintaining that “all options remain open in protecting national interests.”
