EU announces retaliatory tariffs on US as Donald Trump's duty on steel, aluminum goes into effect

The European unification on midweek proclaimed retributory tariffs on imports from the US after Donald ruff’s proposed 25 per cent tariffs on all steel and aluminum imports went into effect.

The EU slapped duties on industrial and agricultural products, with those measures going into effect on April 1.

The EU measures will cover goods from the United States worth some 26 billion euros ($28 billion) These imports include steel and aluminum products, along with textiles, home appliances and agricultural goods.

As the US are applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros),” European Commission President Ursula von der Leyen said in a statement, the Associated Press reported.

The commission manages trade and commercial conflicts on behalf of the 27 member countries.

“We will always remain open to negotiation. We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs,” von der Leyen said.

The commission also said that steel and aluminum products would be hit in return, but also textiles, leather goods, home appliances, household tools, plastics and wood. Agricultural products will also be impacted — including poultry, beef, some seafood, nuts, eggs, sugar and vegetables.

The world’s biggest trading bloc was expecting the US tariffs and prepared in advance, but the measures still place great strain on already tense transatlantic relations. Only last month, Washington warned Europe that it would have to take care of its security in the future.

While US President Donald Trump said his taxes would help create factory jobs in his own country, Ursula von der Leyen said jobs were at stake and the prices would go up, both in Europe and in the United States.”

“We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy,” she said.

Trump slapped similar tariffs on EU steel and aluminum during his first term, which enraged Europe and other allies. The EU also imposed countermeasures in retaliation at the time, raising tariffs on US-made motorcycles, bourbon, peanut butter and jeans, among other items.

The EU estimates that annual trade volume between both sides stands at about $1.5 trillion, representing some 30% of global trade. While the bloc has a substantial export surplus in goods, it says that is partly offset by the US surplus in the trade of services.

The commission says that trade in goods reached 851 billion euros ($878 billion) in 2023, with a trade surplus of 156 billion euros ($161 billion) for the EU. Trade in services was worth 688 billion euros ($710 billion) with a trade deficit of 104 billion euros ($107 billion) for the EU.

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