The European Union is in the process of preparing strategic responses to the unexpected tariffs on steel imports imposed by the United States under the Trump administration, a move that has shaken global markets and further complicated ongoing tariff discussions between Brussels and Washington.
Last week, ahead of the unexpected announcement on Friday, EU Commission President Ursula von der Leyen and U.S. President Donald Trump committed to accelerating discussions to secure an agreement. “Should our negotiations fail to result in a balanced conclusion, the EU is ready to implement retaliatory measures, including in response to this latest tariff hike,” stated European Commission spokesperson Olof Gill during a press briefing in Brussels.
The spokesperson indicated that the EU is in the process of finalizing an expanded list of counteractions, set to automatically activate by July 14 or potentially earlier. This date signifies the end of a 90-day pause designated to facilitate negotiations, marking the termination of reciprocal tariffs by these two major economies on each other. Just halfway through this grace period, President Trump declared the introduction of a 50% tariff on steel imports.
Since President Trump’s return to office, the White House has seen a significant increase in tariffs, with frequent changes in levies being threatened, imposed, and occasionally removed. Senior officials within the EU’s executive commission emphasize their rigorous pursuit of a trade agreement to avoid the 50% tariff on imported goods.
Continuing talks are scheduled to take place in Paris on Wednesday, involving a meeting between the EU’s leading trade negotiator, Maroš Šef?ovi?, and the U.S. Trade Representative, Jamieson Greer.
The EU might consider increasing purchases of liquefied natural gas and defense-related products from the United States, as well as reducing tariffs on vehicles. However, it is unlikely to comply with calls for eliminating the value-added tax—similar to a sales tax—or to open its market to more American beef.
The EU has proposed a “zero for zero” agreement, which would see the removal of tariffs on both sides for industrial goods, including automobiles. Despite President Trump’s dismissal of this offer, EU authorities maintain that it remains a viable option.
The announcement of a substantial 50% tariff on steel imports has raised concerns that significant price increases might impact major purchases from vehicles to household appliances and housing. Moreover, as steel is extensively used in packaging, these tariffs could also significantly affect the cost of a wide range of consumer products.