EU retaliates against Trump’s steel and aluminium tariffs

The countermeasures will amount to tariffs on €26 billion of the U.S. goods entering the EU

The European Union announced that it will apply counter-tariffs on the U.S. imports, retaliating against President Donald Trump’s steel and aluminium tariffs, hours after they came into effect. The countermeasures will amount to tariffs on €26 billion of the U.S. goods entering the EU, equivalent to Mr. Trump’s targeting of $28 billion of EU goods entering U.S. markets.

“We deeply regret this measure,” European Commission President Ursula von der Leyen said, referring to Mr. Trump’s move to impose 25% tariffs on steel, aluminium and products based on these from the EU and other jurisdictions. The U.S. tariffs will impact 5% of all EU goods exports to the U.S., the EU said in a statement.  

The first Trump administration had initially applied these tariffs in 2018. They are referred to as “Section 232” tariffs , named after a provision under U.S. trade law permitting tariffs for reasons of “national security”. .

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The EU response would consist of allowing current suspensions of countermeasures to tariffs imposed during Mr. Trump’s first term to expire at the end of the month, resulting in a return to higher tariffs from April 1. The EU would then consider targeting another approximately €18 billion of U.S. imports to reflect the fact that the current U.S. tariffs impact a broader range and higher value of E.U. exports to the U.S. This second stage would be fully in place by April 13.

“In the meantime, we remain fully open to negotiations,” Ms. Von der Leyen said, emphasizing that it was not in America’s or E.U.’s interest to burden their economies with such tariffs.

The E.U. will also begin consulting individual member countries on the measures immediately. The proposed list of products being targeted includes industrial goods such as steel and aluminium products, leather and textiles. It also includes agricultural goods such as poultry, beef, seafood, nuts, dairy, sugar and vegetables.

The U.S. Trade Representative Jamieson Greer said the E.U. had rejected attempts by several U.S. administrations to address the issue of excess capacity in steel and aluminium manufacturing . “If the EU acted as quickly to address global excess capacity as it does to punish the United States, we likely would be in a different situation today. The EU’s punitive action completely disregards the national security imperatives of the United States – and indeed international security ...,” Mr. Greer said in a statement on Wednesday.

U.K. Prime Minister Keir Starmer said he was “disappointed” to see the tariffs, which have been applied to British steel and aluminium as well.

For now, the U.K. has not retaliated against the tariffs. The Prime Minister, on Wednesday, alluded to the fact that the U.S. and U.K. were negotiating a trade deal which would cover these tariffs.

“But we will keep all options on the table,” the Prime Minister told the House of Commons.

Published - March 12, 2025 12:56 pm IST