EU to retaliate with tariffs against Trump's steel, aluminum duties

European Commission President Ursula von der Leyen

BRUSSELS, Mar 12 (AP/UNB) — The European Union announced Wednesday that it will impose retaliatory tariffs in response to the Trump administration’s decision to increase tariffs on steel and aluminum imports to 25%. These countermeasures, targeting industrial and agricultural products, will take effect on April 1.

While the EU anticipated the U.S. tariffs and had prepared accordingly, the new measures have strained transatlantic relations, which were already under pressure. Just last month, the U.S. had warned Europe to take responsibility for its own security.

The EU's retaliatory tariffs will cover U.S. goods worth around 26 billion euros ($28 billion), affecting not only steel and aluminum but also textiles, home appliances, and agricultural products.

Britain, which is no longer part of the EU, has decided not to impose its own countermeasures but expressed disappointment over the U.S. decision to levy the tariffs.

European Commission President Ursula von der Leyen stated that the EU’s countermeasures are proportionate to the U.S. tariffs. She emphasized that the EU remains open to negotiations, believing it is not in anyone’s interest to burden economies with tariffs amidst global economic and geopolitical uncertainty.

The tariffs will affect a range of goods, including steel, aluminum, textiles, leather products, household items, plastics, wood, and agricultural products such as poultry, beef, seafood, nuts, eggs, sugar, and vegetables.

Von der Leyen warned that the tariffs would lead to job losses and higher prices in both the U.S. and Europe, disrupting supply chains and creating economic uncertainty.

European steel companies are already bracing for losses, with some estimates suggesting the EU could lose up to 3.7 million tons of steel exports, as the U.S. is the second-largest market for European steel.

This latest round of tariffs follows similar actions during Trump’s first term, which also prompted the EU to impose countermeasures on U.S. goods like motorcycles, bourbon, and peanut butter.

The EU and U.S. engage in trade worth approximately $1.5 trillion annually, representing about 30% of global trade. While the EU has a surplus in goods trade, this is partly offset by the U.S. surplus in services.

Meanwhile, British Business Secretary Jonathan Reynolds reaffirmed the U.K.’s intent to engage with the U.S. on trade issues and keep all options open, suggesting that the country could impose its own tariffs if necessary to protect national interests. Prime Minister Keir Starmer’s government is working to negotiate a broader economic agreement with the U.S. to eliminate additional tariffs and support U.K. businesses.