EU targets $28.3B in US goods as retaliation for Trump-era tariffs

The European Union (EU) has decided to fight back against the United States after the US imposed new tariffs on steel and aluminum. The EU announced on Wednesday that it will introduce countermeasures, placing tariffs on $28.3 billion worth of American products.

The EU said it will apply these tariffs starting from April 1, 2025. This decision comes after the US administration imposed a 25% duty on imported steel and aluminum, escalating tensions between the two economic giants.

The European Commission, which handles trade policies for the EU, stated that the response would be “swift and fair.” The EU believes the US move is unfair and has been preparing for this situation for months.

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Tariffs Much Higher Than Before

The new US tariffs are nearly four times higher than those introduced during Donald Trump’s first term. Back then, the US placed tariffs on about $7 billion worth of European metals, arguing that it was necessary for national security. This time, the impact is expected to be much greater.

EU’s Plan to Hit Back

Trump has also said he will introduce new tariffs in early April, focusing on products from countries that he believes are blocking US trade. The EU is one of the main targets, along with European cars and other goods.

In response, EU trade chief Maros Sefcovic recently traveled to Washington, hoping to find a peaceful solution. He met with US Commerce Secretary Howard Lutnick and suggested reducing European tariffs on industrial goods, including cars. He also offered to increase EU imports of American liquefied natural gas and defense products.

However, Sefcovic said on Monday that the US does not seem interested in making a deal. “The US is looking out for its interests, and so is the EU,” he said. “We will always defend European businesses, workers, and consumers from unfair tariffs.”

A Carefully Planned Retaliation

EU officials have been preparing for months to take action if the US moves ahead with new tariffs. They have created different lists of American products that will be taxed in response. The goal is to target goods that will have the biggest economic impact on the US while minimizing damage to Europe.

Flood of Cheap Steel Expected

European steelmakers are worried about the effects of these new tariffs. They expect their exports to the US to drop, while imports into Europe will increase. This is because metal that was originally meant for the US will now be redirected to Europe.

The European Steel Association, Eurofer, warned that the market is already full of cheap steel from Asia, North Africa, and the Middle East. If even more steel enters Europe due to the US tariffs, it could hurt local producers.

During Trump’s first term, for every three tonnes of steel that could not enter the US because of tariffs, two tonnes ended up in the EU. A similar pattern is expected this time.

Impact on Aluminum

The aluminum industry is also preparing for major changes. Most of the aluminum used in the US comes from Canada, but Trump recently announced that he would double tariffs on Canadian steel and aluminum to 50%. This could lead to an increase in aluminum shipments to Europe, creating a surplus.

A Long History of Disputes

The US and the EU have been arguing over steel and aluminum tariffs since 2018. That year, Trump first imposed tariffs, claiming national security reasons. European leaders dismissed this explanation and saw it as an unfair trade barrier.

In response, the EU placed tariffs on well-known American brands, including Harley-Davidson motorcycles and Levi’s jeans. The two sides later agreed to a temporary peace in 2021, with the US lifting some restrictions and the EU freezing its counter-tariffs.

However, this truce is set to end soon. By the end of March, the EU will resume tariffs on about $3 billion worth of American goods. If the US does not back down, the EU is ready to act quickly and impose further measures.

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