The European Union has announced it will impose tariffs on up to €26bn worth of US goods in retaliation to Donald Trump’s 25% tariffs on steel and aluminium imports, escalating trade tensions between the two economies.
European Commission President Ursula von der Leyen described the US levies, which came into effect on Wednesday, as “unjustified trade restrictions” and confirmed that the EU’s response would take effect from 1 April.
“Tariffs are taxes, they are bad for business and worse for consumers,” she said. “They are disrupting supply chains. They bring uncertainty for the economy.”
The EU’s countermeasures will reinstate duties on US exports worth €4.5bn, including bourbon whiskey, jeans, and Harley-Davidson motorbikes—items that were initially targeted during Trump’s first term but later suspended after negotiations with President Joe Biden. In addition, a second wave of tariffs, worth up to €18bn, will apply to various steel and aluminium products as well as agricultural goods such as poultry, beef, seafood, and nuts. These measures require approval from EU member states and further industry consultations before they take effect in mid-April.
A senior EU official confirmed that the bloc aims to target politically sensitive US exports, including soya beans grown in Louisiana, the home state of US House Speaker Mike Johnson. “We love soybeans, but we’re happy to buy them from Brazil or from Argentina or from anywhere else,” the official said.
Political and economic fallout
The EU’s response follows weeks of diplomatic efforts to avoid the tariffs, which Brussels argues will harm both economies. France’s European Affairs Minister, Benjamin Haddad, warned that the EU could expand its countermeasures to include digital services and intellectual property rights if necessary.
EU officials also indicated they had not ruled out imposing “safeguard measures” on steel and aluminium imports from other countries if US trade barriers led to a surge in foreign metal imports into Europe.
The UK, while not immediately joining the EU’s countermeasures, has left the door open to future action. Prime Minister Keir Starmer expressed disappointment over the US tariffs, stating that the government would “keep all options on the table” while negotiating an economic deal with Washington.
Meanwhile, Australian Prime Minister Anthony Albanese condemned the US decision as “entirely unjustified” but confirmed that Australia would not impose reciprocal tariffs.
Industry concerns and broader trade implications
The tariffs have sparked concern among US and European businesses. UK Steel, a trade association, warned that Trump’s tariffs would have “hugely damaging consequences” for British suppliers, while Bernd Lange, chair of the European Parliament’s trade committee, called the move “another dose of self-inflicted tariff pain” by the Trump administration.
In the US, steel and aluminium tariffs have historically had mixed results. While intended to boost domestic production, previous measures under Trump’s first term increased costs for industries reliant on imported metals. A 2023 study by the US International Trade Commission found that the 2018 tariffs modestly expanded domestic steel and aluminium production but raised costs for manufacturers, resulting in a net economic loss of over $3bn.
The latest escalation comes amid broader trade tensions. Trump has threatened to double tariffs on Canadian steel and aluminium, though he backed down after Ontario Premier Doug Ford agreed to pause a planned 25% surcharge on electricity exports to US states.
