EU Imposes Countermeasures Following US Tariffs on Steel and Aluminum
European Commission announces activation of previously suspended countermeasures against US products in response to newly imposed tariffs.
The European Commission has announced its intention to activate countermeasures in response to the United States' recent tariffs on steel and aluminum imports from the European Union, which came into effect on Wednesday.
The Commission expressed regret over the US decision to impose tariffs, deeming them unjustified and disruptive to transatlantic trade, potentially leading to increased prices for businesses and consumers.
As a result, existing countermeasures against the United States, which were suspended in 2018 and 2020, will be activated starting April 1. These measures target a range of American products including motorcycles, bourbon, and boats, responding to an economic impact of approximately €8 billion due to the affected EU steel and aluminum exports.
In light of the new US tariffs that affect more than €18 billion in EU exports, the European Commission also plans to introduce a package of new countermeasures on American exports, expected to take effect in mid-April following consultations with member states and stakeholders.
The total value of the countermeasures that could be applied to US goods amounts to €26 billion, roughly equivalent to the economic volume of the American tariffs imposed.
European Commission President Ursula von der Leyen stated that the countermeasures would be strong yet proportionate, reflecting the $28 billion worth of tariffs implemented by the US. She emphasized the EU's readiness to negotiate, underscoring the belief that imposing tariffs is not in the mutual economic interest amidst geopolitical and economic uncertainties.
Von der Leyen has tasked Trade Commissioner Valdis Dombrovskis with continuing discussions with American officials.
She highlighted the EU's view that meaningful dialogue is preferable to escalating trade tensions.
The US tariffs, initiated under President Donald Trump, first affected European steel and aluminum exports valued at €6.4 billion in June 2018, with additional tariffs introduced in January 2020 impacting about €40 million in exports of certain steel and aluminum products.
In response, the EU imposed its own countermeasures worth €2.8 billion on American exports in June 2018 and enacted further countermeasures following additional US tariffs in 2020.
Remaining countermeasures targeting exports valued at up to €3.6 billion were set to take effect on June 1, 2021; however, these measures were subsequently suspended until March 31, 2025, to allow both parties time to seek a more sustainable solution.
French Minister for Europe, Benjamin Hadad, indicated on Wednesday that the EU is prepared to escalate its response to US tariffs, although acknowledging that a trade war is not in anyone's interest.
He emphasized the European Commission's readiness to consider measures beyond traditional products, stating that additional tariffs could extend to digital services or intellectual property.
Hadad referred specifically to potential taxation on American technology giants like Netflix, Google, and Facebook, within the broader context of ongoing trade tensions between the US and the EU.
Although the French government declined to provide further details, it noted that these services already fall under the European Digital Services Act (DSA), which regulates various digital platforms from e-commerce sites like Alibaba to social networks such as TikTok.
The Commission expressed regret over the US decision to impose tariffs, deeming them unjustified and disruptive to transatlantic trade, potentially leading to increased prices for businesses and consumers.
As a result, existing countermeasures against the United States, which were suspended in 2018 and 2020, will be activated starting April 1. These measures target a range of American products including motorcycles, bourbon, and boats, responding to an economic impact of approximately €8 billion due to the affected EU steel and aluminum exports.
In light of the new US tariffs that affect more than €18 billion in EU exports, the European Commission also plans to introduce a package of new countermeasures on American exports, expected to take effect in mid-April following consultations with member states and stakeholders.
The total value of the countermeasures that could be applied to US goods amounts to €26 billion, roughly equivalent to the economic volume of the American tariffs imposed.
European Commission President Ursula von der Leyen stated that the countermeasures would be strong yet proportionate, reflecting the $28 billion worth of tariffs implemented by the US. She emphasized the EU's readiness to negotiate, underscoring the belief that imposing tariffs is not in the mutual economic interest amidst geopolitical and economic uncertainties.
Von der Leyen has tasked Trade Commissioner Valdis Dombrovskis with continuing discussions with American officials.
She highlighted the EU's view that meaningful dialogue is preferable to escalating trade tensions.
The US tariffs, initiated under President Donald Trump, first affected European steel and aluminum exports valued at €6.4 billion in June 2018, with additional tariffs introduced in January 2020 impacting about €40 million in exports of certain steel and aluminum products.
In response, the EU imposed its own countermeasures worth €2.8 billion on American exports in June 2018 and enacted further countermeasures following additional US tariffs in 2020.
Remaining countermeasures targeting exports valued at up to €3.6 billion were set to take effect on June 1, 2021; however, these measures were subsequently suspended until March 31, 2025, to allow both parties time to seek a more sustainable solution.
French Minister for Europe, Benjamin Hadad, indicated on Wednesday that the EU is prepared to escalate its response to US tariffs, although acknowledging that a trade war is not in anyone's interest.
He emphasized the European Commission's readiness to consider measures beyond traditional products, stating that additional tariffs could extend to digital services or intellectual property.
Hadad referred specifically to potential taxation on American technology giants like Netflix, Google, and Facebook, within the broader context of ongoing trade tensions between the US and the EU.
Although the French government declined to provide further details, it noted that these services already fall under the European Digital Services Act (DSA), which regulates various digital platforms from e-commerce sites like Alibaba to social networks such as TikTok.
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