Europe Retaliates Against U.S.: EU Announces $28 Billion In Tariffs To Counter Trump’s Steel And Aluminum Levies

12 Mar 2025 by Siladitya Ray · Forbes

Topline

The European Union on Wednesday announced economic countermeasures against the U.S. worth around $28 billion, shortly after President Donald Trump’s 25% tariffs on all steel and aluminum imports went into effect.

Ursula von der Leyen, President of the European Commission, stands in the European Parliament ... [+] building and speaks. MEPs want to discuss the future of European defense with EU Commission President von der Leyen.dpa/picture alliance via Getty Images

Key Facts

The European Commission, the EU’s executive body, criticized the “unjustified” U.S. tariffs on steel and aluminum from the bloc and said it has launched “swift and proportionate countermeasures” that will go into effect starting April 1.

The commission said a pause on “existing 2018 and 2020 countermeasures” against the U.S. will be allowed to lapse next month and these will target “a range of US products that respond to the economic harm done on €8 billion ($8.72 billion) of EU steel and aluminum exports.”

The commission said it is also readying a new package of countermeasures that will be in response to Trump’s new tariffs affecting “more than €18 billion ($19.61 billion) of EU exports.”

This second set of countermeasures will be implemented in mid-April, after a “consultation of Member States and stakeholders.”

In total, the commission said its countermeasures will apply to U.S. exports worth up to €26 billion ($28.33 billion), “matching the economic scope of the US tariffs.”

Crucial Quote

Ursula von der Leyen, the president of the European Commission, said: “Tariffs are taxes. They are bad for business, and even worse for consumers…Jobs are at stake. Prices will go up. In Europe and in the United States…The countermeasures we take today are strong but proportionate. As the U.S. are applying tariffs worth $28 billion, we are responding with countermeasures worth €26 billion.”

Big Number

€6 billion ($6.55 billion). That is the additional amount U.S. importers will have to pay as tariffs for importing steel from the European Union, “based on current inflows,” the commission said. The $28 worth of goods EU impacted by Trump’s latest levies account for around 5% of the bloc’s exports to the U.S.

What U.s. Goods Will Be Targeted?

The EU’s member states began discussions on what U.S. products will be targeted in the second tranche of tariffs that go into effect in mid-April. According to the commission, proposed targets include industrial products—like steel, aluminum, textiles, leather goods, home appliances, among other items—and agricultural products—like poultry, beef, seafood, dairy, nuts, sugar and vegetables. An EU official cited by the Financial Times said soybeans from the U.S. were in the list of potential tariff targets as they are grown in Louisiana—the home state of House Speaker Mike Johnson. The first set of countermeasures that go into effect on April 1, will revive the paused tariffs on items like U.S.-made motorcycles, bourbon, peanut butter and jeans—which were first initiated during the previous Trump term.

How Have Others Reacted To The Latest Trump Tariffs?

The British government expressed disappointment about the steel and aluminum tariffs but said it won’t enact any retaliatory measures immediately. The country’s Business Secretary Jonathan Reynolds said they were “focused on a pragmatic approach” and are “rapidly negotiating a wider economic agreement with the U.S. to eliminate additional tariffs.” However, Reynolds noted the countermeasures were not off the table and Britain “won’t hesitate to respond in the national interest.” The trade body UK Steel also condemned the tariffs and its Director General Gareth Stace said: “President Trump must surely recognise that the UK is an ally, not a foe. Our steel sector is not a threat to the US, but a partner to key customers.” Australian Prime Minister, Anthony Albanese, also decried the tariffs as “entirely unjustified” and said this went against “ the spirit of our two nations’ enduring friendship.” Albanese said he plans to continue pushing Trump to carve out an exemption for Australian exports—something he agreed to put in place during his first term—but admitted that the president had snubbed his recent attempts at dialog.