BRUSSELS — In swift response to the Trump administration’s newly imposed 25% tariffs on steel and aluminum imports, the European Union announced Wednesday that it would be placing new duties on U.S. industrial and agricultural products.
Despite anticipating the U.S. tariffs and preparing accordingly, the world’s largest trading entity acknowledges that these measures intensify the already strained relationship between the U.S. and Europe. Just last month, Washington cautioned Europe to prioritize its own security.
The E.U.’s countermeasures will encompass approximately 26 billion euros ($28 billion) worth of American goods, expanding beyond steel and aluminum to include textiles, household appliances, and agricultural items. Similar to President Trump’s initial term, motorcycles, bourbon, peanut butter, and jeans are among the targeted products.
The E.U. tariffs are strategically designed to exert pressure on the U.S. while minimizing further economic repercussions for Europe. These import taxes primarily focus on states held by Republicans, such as soybeans from House Speaker Mike Johnson’s Louisiana, along with beef and poultry from Kansas and Nebraska. Agricultural products from Alabama, Georgia, and Virginia are also included.
The E.U. moves to protect itself
European Commission President Ursula von der Leyen stated that the bloc remains open to negotiations.
She said that while the U.S. is imposing tariffs totaling $28 billion, the E.U. is responding with 26 billion euros in countermeasures. The commission is responsible for handling trade and commercial disputes on behalf of the E.U.’s 27 member states.
Von der Leyen emphasized that imposing tariffs is not in the shared interest of the U.S. and E.U., especially given the current global geopolitical and economic uncertainties.
The commission added that their retaliatory measures would also affect steel and aluminum products, along with textiles, leather goods, household appliances, tools, plastics, and wood. Agricultural goods, including poultry, beef, certain seafood items, nuts, eggs, sugar, and vegetables, will also be affected.
While Trump asserted that his tariffs would stimulate job creation in U.S. factories, von der Leyen countered that jobs are at risk and prices will increase in both Europe and the U.S.
She conveyed her disappointment with the measures, stating that tariffs are detrimental to businesses and consumers by disrupting supply chains and creating economic uncertainty.
American business group urges talks
The American Chamber of Commerce to the E.U. cautioned that the U.S. tariffs and E.U. countermeasures would negatively impact jobs, prosperity, and security on both sides of the Atlantic.
The Chamber urged both parties to de-escalate the situation and seek a negotiated resolution promptly.
What will actually happen?
During his first term, Trump implemented similar tariffs on steel and aluminum from the E.U., triggering resentment from European allies. In response, the E.U. levied retaliatory tariffs on U.S.-made goods, including motorcycles, bourbon, peanut butter, and jeans.
This time, the E.U.’s actions will be implemented in two phases. Firstly, on April 1st, the commission will reinstate “rebalancing measures” that were in effect from 2018 to 2020 but were suspended under the Biden administration. Subsequently, on April 13th, additional duties targeting 18 billion euros ($19.6 billion) in U.S. exports to the bloc will be imposed.
E.U. Trade Commissioner Maroš Šefčovič traveled to Washington last month to avert the tariffs, meeting with U.S. Commerce Secretary Howard Lutnick and other high-ranking trade officials.
On Wednesday, he stated that his trip made it clear that the E.U. is not the source of the problem.
Šefčovič told reporters at the European Parliament in Strasbourg, France, that he had argued to avoid the unnecessary burden of measures and countermeasures, but that it takes two parties to reach an agreement.
European steel companies brace for losses
The European steel association Eurofer projects that the E.U. could face a reduction of up to 3.7 million tons in steel exports. The U.S. is the second largest export market for E.U. steel producers, accounting for 16% of total E.U. steel exports.
The E.U. estimates that the annual trade volume between the two sides is approximately $1.5 trillion, representing roughly 30% of global trade. While the bloc maintains a substantial export surplus in goods, it notes that this is partially balanced by the U.S. surplus in the trade of services.
Meanwhile, Britain, which is not an E.U. member, announced that it will not impose its own retaliatory measures on the U.S. British Business Secretary Jonathan Reynolds said Wednesday that he would continue to engage closely and productively with the U.S. to advocate for U.K. business interests.
He did not dismiss the possibility of future tariffs on U.S. imports, stating that all options remain under consideration and that the government would not hesitate to act in the national interest.
—McHugh reported from Frankfurt. Associated Press writer Jill Lawless in London contributed to this report.
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