Shortly after the United States implemented new 25% tariffs on steel and aluminum imports, the European Union has announced retaliatory measures…

Starting in April, the EU will impose tariffs on US goods worth €26 billion, with the first wave targeting products such as Bourbon whiskey, jeans, motorcycles, boats, and peanut butter.

According to the European Commission, additional tariffs will follow in mid-April after consultations with EU member states.

Von der Leyen: “Tariffs hurt businesses and consumers”

EU Commission President Ursula von der Leyen criticized the US decision, calling the tariffs harmful for trade and even worse for consumers. She reiterated that the EU was prepared for a swift response to US trade restrictions.

The new US tariffs impact €26 billion worth of EU exports, accounting for approximately 5% of total EU exports to the US. According to the European Commission, US importers will pay up to €6 billion in additional duties due to these tariffs. The EU’s response is intended to neutralize the impact on European businesses.

EU’s planned response in two phases

The EU countermeasures will be implemented in two phases:

• Phase 1 (April): Tariffs on €8 billion worth of US imports
• Phase 2 (Mid-April): Additional tariffs on €18 billion worth of US goods

“The European Union must act to protect consumers and businesses,” von der Leyen stated, calling the measures proportionate.

Bernd Lange, chairman of the European Parliament’s Trade Committee, told rbb24 Inforadio that steel and aluminum products will be the main focus of the EU’s response. However, he noted that symbolic items like motorcycles over 500cc were also included in the tariff list, which spans four to five pages.

Trump defends tariffs as a “national security” measure

Former US President Donald Trump, who originally introduced the tariffs during his administration, argued that excessive steel and aluminum imports pose a national security threat to the US. He also accused China of flooding the global market with cheap metal, escalating trade tensions further.

However, EU officials dismissed this justification as unfounded. Bernd Lange criticized the US rationale, saying:
“Fishing gear, pumps, and car bumpers are now subject to a 25% tariff. How can anyone claim that these items endanger US national security? It’s completely absurd.”

EU remains open to negotiations

Despite the tariff dispute, von der Leyen emphasized that the EU is still willing to negotiate with the US government to find a diplomatic solution.

“We firmly believe that in a world full of geopolitical and economic uncertainties, it is not in our shared interest to burden our economies with tariffs,” she said.

She has tasked Trade Commissioner Maros Sefcovic with reopening negotiations with the US to explore alternative solutions.

US steel imports and the role of the EU

Recent data shows that the US imports around 25% of its steel and over 40% of its aluminum. Secondary aluminum, made from recycled materials, has even higher import rates.

According to the American Iron and Steel Institute, the top steel suppliers to the US in 2024 were:

• Canada
• Brazil
• Mexico
• Germany
• China

The EU accounts for around 10% of all US steel imports and 15% of aluminum imports. The German steel industry association Wirtschaftsvereinigung Stahl highlighted that the US remains the largest export market for European steel manufacturers.

As trade tensions rise, all eyes are now on the US and EU to see whether negotiations can prevent further escalation in the ongoing dispute.