European Fee president Ursula von der Leyen addresses European Parliament members on new plans to ramp up protection spending agreed ultimately week’s summit, Tuesday, March 11, 2025 on the European Parliament in Strasbourg, japanese France.
Pascal Bastien/AP
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Pascal Bastien/AP
BRUSSELS — The European Union on Wednesday introduced retaliatory commerce motion with a sequence of duties on U.S. industrial and agricultural merchandise that may go into impact from April 1, responding to the Trump administration improve in tariffs on all metal and aluminum imports to 25%.
The world’s largest buying and selling bloc was anticipating the U.S. tariffs and ready prematurely, however the measures nonetheless place nice pressure on already tense transatlantic relations. Solely final month, Washington warned Europe that it must handle its personal safety sooner or later.
The EU measures will cowl items from the USA value some 26 billion euros ($28 billion), and never simply metal and aluminum merchandise, but in addition textiles, dwelling home equipment and agricultural items. Bikes, bourbon, peanut butter and denims might be hit, as they have been throughout President Donald Trump’s first time period.
Britain — which isn’t a part of the EU — in the meantime stated it could not impose retaliatory measures of its personal on the USA. The U.Okay. authorities referred to as Washington’s choice to impose 25% tariffs on world metal and aluminum imports “disappointing.”
The EU strikes to guard itselfEuropean Fee President Ursula von der Leyen stated in an announcement saying the measures Wednesday that the bloc “will always remain open to negotiation.”
“As the U.S. are applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros,” she stated. The fee manages commerce and business conflicts on behalf of the 27 member EU nations.
“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 stated.
The fee additionally stated that metal and aluminum merchandise could be hit in return, but in addition textiles, leather-based items, dwelling home equipment, family instruments, plastics and wooden. Agricultural merchandise can even be impacted — together with poultry, beef, some seafood, nuts, eggs, sugar and greens.
Trump stated his taxes would assist create U.S. manufacturing facility jobs, however von der Leyen stated: “Jobs are at stake. Prices will go up. 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 stated.
What is going to really occur?Trump slapped related tariffs on EU metal and aluminum throughout his first time period in workplace, which enraged European and different allies. The EU additionally imposed countermeasures in retaliation on the time, elevating tariffs on U.S.-made bikes, bourbon, peanut butter and denims, amongst different objects.
This time, the EU motion will contain two steps. First, the fee will reintroduce what it calls “rebalancing measures,” which the EU had from 2018 and 2020 however which have been suspended below the Biden administration, then extra duties concentrating on 18 billion euros ($19.6 billion) in U.S. exports to the bloc.
EU Commerce Commissioner Maroš Šefčovič traveled to Washington final month in an effort to go off the tariffs, assembly with U.S. Commerce Secretary Howard Lutnick and different prime commerce officers.
He stated on Wednesday that it turned clear throughout that journey “that the EU is not the problem.”
“I argued to avoid the unnecessary burden of measures and countermeasures, but you need a partner for that. You need both hands to clap,” Šefčovič instructed reporters on the European Parliament in Strasbourg, France.
European metal corporations brace for lossesThe EU may lose as much as 3.7 million tons of metal exports, in accordance with Henrik Adam, president of the Eurofer European metal affiliation.
“It will further worsen the situation of the European steel industry, exacerbating an already dire market environment,” Adam stated final month.
The U.S. is the second largest export marketplace for EU metal producers, representing 16% of the overall EU metal exports.
“Losing a significant part of these exports cannot be compensated by EU exports to other markets,” Adam stated.
Transatlantic tradeThe EU estimates that annual commerce quantity between either side stands at about $1.5 trillion, representing some 30% of worldwide commerce. Whereas the bloc has a considerable export surplus in items, it says that’s partly offset by the U.S. surplus within the commerce of companies.
The fee says that commerce in items reached 851 billion euros ($878 billion) in 2023, with a commerce surplus of 156 billion euros ($161 billion) for the EU. Commerce in companies was value 688 billion euros ($710 billion) with a commerce deficit of 104 billion euros ($107 billion) for the EU.
In the meantime, British Business Secretary Jonathan Reynolds stated Wednesday he would “continue to engage closely and productively with the U.S. to press the case for U.K. business interests.” He didn’t rule out future tariffs on U.S. imports, saying “we will keep all options on the table and won’t hesitate to respond in the national interest.”
Heart-left Prime Minister Keir Starmer has labored to construct robust ties with Trump, in hope of avoiding the tariffs levied on many different U.S. buying and selling companions.
Reynolds stated the federal government stays “focused on a pragmatic approach and are rapidly negotiating a wider economic agreement with the U.S. to eliminate additional tariffs and to benefit U.K. businesses and our economy.”
