EU to respond to US tariffs with countermeasures worth US$28 billion from April 1

The European Commission on Wednesday announced it will impose retaliatory tariffs on 26 billion euros (US$28 billion) worth of US goods from next month in response to US tariffs of 25 percent on steel and aluminum imports.

First, the Commission let the suspension of existing countermeasures against the United States lapse on April 1. The move targets US products that "respond to the economic harm done on 8 billion euros of EU steel and aluminum exports," according to a statement released by the Commission.

Second, in response to new US tariffs affecting more than 18 billion euros of EU exports, the Commission "is putting forward a package of new countermeasures," with implementation expected by mid-April.

"Our countermeasures will be introduced in two steps. Starting on April 1 and fully in place as of April 13," European Commission President Ursula Von der Leyen said in the statement.

The United States imposed a 25-percent tariff on all steel and aluminum imports on Wednesday.

Denouncing the US move as "unjustified," Von der Leyen emphasized that the countermeasures introduced are firm yet proportionate.

"As the US is applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros. This matches the economic scope of the US tariffs," she said.

However, she also stressed that the EU remains open to negotiations and has tasked the European Commissioner for Trade and Economic Security, Maros Sefcovic, with resuming talks to seek solutions with the United States.

The countermeasures target industrial and agricultural goods, including steel, aluminum, textiles, leather, home appliances, tools, plastics, wood, poultry, beef, seafood, nuts, eggs, dairy, sugar, and vegetables.

The Commission announced that stakeholder consultations will begin on March 12 and conclude on March 26, after which it will assess feedback, finalize its draft act, and seek EU member states' approval.

During his first term, Trump imposed similar tariffs on EU steel and aluminum. In response, the EU enacted countermeasures, raising tariffs on US-made products such as boats, bourbon, and motorbikes.

Data from the European Commission shows that EU-US trade reached 1.6 trillion euros in 2023. The Commission claimed that bilateral trade remained largely balanced, with a 48-billion-euro trade surplus for the EU, which accounted for just 3 percent of total trade.