The European Union is standing up to U.S. tariffs on steel and aluminum imports with countermeasures that are set to take effect. According to the European Commission, existing retaliatory tariffs to previous U.S. duties on EU steel and aluminum will be reinstated on April 1 after a period of suspension. These countermeasures will target a variety of products including bourbon, boats, and motorbikes. Additionally, the European Commission plans to introduce a new set of countermeasures by mid-April following consultations with EU stakeholders.
The 2018-era tariffs imposed by the U.S. targeted a range of goods including bourbon, whiskeys, corn, orange juice, cranberry juice, and peanut butter. The new countermeasures being considered by the EU could extend to additional tariffs on agricultural products such as poultry, beef, seafood, nuts, eggs, dairy, sugar, and vegetables. These actions would cover U.S. exports worth up to 26 billion euros, matching the economic impact of the U.S. tariffs.
The European Commission has criticized the U.S. tariffs on steel and aluminum as unjustified, disruptive, and harmful to businesses and consumers. However, they have expressed readiness to negotiate with the Trump administration in order to find a solution and potentially reverse the countermeasures. European Commission President Ursula von der Leyen emphasized that the countermeasures being taken are strong but proportionate.
This move by the EU is in line with von der Leyen’s previous statement that the White House’s tariffs would lead to firm and proportionate countermeasures. Other U.S. trading partners, such as Mexico and Canada, have also expressed their opposition to the added duties when they were first announced. In fact, Canada recently avoided a 25% steel and aluminum duty after Ontario suspended a retaliatory surcharge on electricity exports.
Overall, the EU’s response to the U.S. tariffs on steel and aluminum reflects a commitment to protecting its interests and standing up against what it perceives as unfair trade practices. The outcome of the consultations and potential negotiations between the EU and the U.S. will be closely watched to see how this trade dispute unfolds in the coming weeks.
