EU hits back at Trump tariffs with measures on $28 billion of US goods

US-EU trade dispute: The Trump administration recently imposed 25% tariff on European steel and aluminium imports

The European Union on Wednesday announced a series of countermeasures in response to the latest US tariffs on steel and aluminium, with plans to impose duties on 26 billion euros ($28.3 billion) worth of American goods. The announcement came shortly after US President Donald Trump's proposed 25 per cent tariffs on steel and aluminium imports came into effect.

 

EU condemns Trump tariffs

In an official statement, the EU condemned these tariffs, calling them unjustified, harmful to transatlantic trade, and damaging to businesses and consumers on both sides of the Atlantic.

 

“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. Jobs are at stake. Prices will go up—in Europe and in the United States,” European Commission President Ursula von der Leyen said. 

 

She added that while the EU remains open to negotiations, it will act decisively to protect European industries.

 

Trump tariffs on steel, aluminum

On Wednesday, the US administration imposed 25 per cent tariffs on European steel and aluminium imports, quadrupling the scale of similar duties introduced during President Trump’s first term. Back then, the US had targeted $7 billion worth of EU metal exports, citing national security concerns.  

Donald Trump's 25% tariff on all steel, aluminium imports take effect

 

Now, Trump has gone further, announcing additional reciprocal tariffs set to take effect on April 2. These new measures will target European policies that Washington views as trade barriers, including the bloc’s value-added tax, as well as specific industries such as automobile manufacturing.

 

EU's 2-step retaliation against US 

The EU has announced a two-step approach to its countermeasures against US tariffs:

 

1. Restoring suspended countermeasures (effective April 1, 2025): This means that the the EU will reinstate tariffs that were previously imposed in response to Trump-era metal duties. These measures will target a range of US products equivalent to the economic harm suffered by the EU’s 8 billion euros worth of steel and aluminium exports.

 

2. Introducing new countermeasures (finalised by mid-April): In response to the latest US tariffs impacting over 18 billion euros of EU exports, Brussels is finalising an expanded package of retaliatory duties. The countermeasures will be shaped after consulting EU Member States and industry stakeholders.

 

US-EU trade dispute

The US-EU trade dispute over metals has been simmering since 2018, when Trump first imposed steel and aluminium tariffs under the pretext of national security. The EU retaliated by targeting politically sensitive American products like motorcycles, jeans, and bourbon whiskey. A temporary truce was reached in 2021 under President Joe Biden, but the latest US move reignites tensions.

 

Despite the escalation, Brussels maintains that a negotiated solution remains preferable.

 

Trade Commissioner Maros Sefcovic has been tasked with resuming talks with Washington in an attempt to de-escalate the situation.