THE EU has announced retaliatory tariffs of up to 26bn euros (£22bn) on US imports, responding to President Donald Trump’s 25% levies on global steel and aluminium, effective since Wednesday morning.
European Commission President Ursula von der Leyen condemned the US tariffs as ‘unjustified trade restrictions’, confirming ‘strong, but proportionate’ counter-measures from 1st April.
She said: ‘Tariffs are taxes. They are bad for business and worse for consumers. They are disrupting supply chains. They bring uncertainty for the economy.’
From 1st April, the EU will reintroduce tariffs on 4.5 billion euros worth of US products – including bourbon whisky, jeans and Harley-Davidson motorcycles – previously suspended following negotiations with Joe Biden’s administration.
The targeted goods, chosen strategically from Republican-controlled states, were originally valued at 6.3 billion euros but have decreased due to Brexit and reduced US exports.
Additionally, from mid-April, further EU tariffs covering steel, aluminium, and agricultural products like beef, poultry, seafood, nuts and soya beans – totalling around 18bn euros – will be enforced, pending approval by member states and consultation with industry stakeholders.
A senior EU official explained the targeting strategy: ‘We try to hit … where it hurts.’ Specifically mentioning soya beans from Louisiana, home state of US House Speaker Mike Johnson, the official noted: ‘We love soya beans, but we’re happy to buy them from Brazil or from Argentina or from anywhere else.’
EU officials later indicated that, following further consultation, the actual goods targeted may reduce slightly to around 22.5bn euros. However, France’s European Affairs Minister, Benjamin Haddad, hinted that the EU’s response could ‘go further’, possibly extending to digital services and intellectual property. Haddad said the measures were ‘proportionate’, adding: ‘If it came to a situation where we had to go further, digital services or intellectual property could be included.’
Von der Leyen emphasised her openness to dialogue, stating: ‘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.’
The UK has yet to announce any reciprocal measures. Prime Minister Keir Starmer described the US tariffs as ‘disappointing’ but confirmed Britain would take ‘a pragmatic approach’. Starmer said the UK is currently ‘negotiating an economic deal which covers and will include tariffs if we succeed’, but ‘will keep all options on the table’.
Previously, Starmer had clarified that the UK would not apply immediate counter-tariffs after unsuccessful efforts to exempt British steel from Trump’s measures. Although the EU has discussed responses with other trading partners, including the UK, Norway, Switzerland, Canada, and Japan, no coordinated response has been agreed.
UK Steel Director General Gareth Stace warned the tariffs could cause ‘hugely damaging consequences’ for the British industry, stating: ‘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, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade.’