Lorne Cook and David Mchugh, Associated Press
BRUSSELS (AP) — The European Union on Wednesday announced retaliatory trade measures with new duties on US industry and agricultural products, responding to 25% within hours to increase tariffs on all steel and aluminum imports.
The world’s largest trade bloc had prepared in advance, expecting US tariffs, but the measure still places a heavy burden on already tense transatlantic relations. Only last month, Washington warned Europe that it must cherish its own safety in the future.
The EU measures cover approximately 26 billion euros ($28 billion) of goods from the US, covering not only steel and aluminum products, but also textiles, appliances and agricultural products. Motorcycles, bourbon, peanut butter and jeans will also be attacked during President Donald Trump’s first term.
The EU duties aim to be a US pressure point while minimizing additional damage to Europe. EU officials have revealed that the tariffs (taxes on imports) are intended for products made in Republican-owned states, including beef and poultry in Kansas and Nebraska, and wood products in Alabama and Georgia. But tariffs also collide with blue states such as Illinois, the number one producer of soybeans in the United States. This is also on the list.
Spirits producers essentially became collateral damage in a dispute over steel and aluminum. The EU’s move is “very disappointing and seriously undermine successful efforts to rebuild US spirit exports in EU countries,” said Chris Swanger, head of the Distilled Spirits Council. The EU is our main whiskey destination, and exports have skyrocketed by 60% over the past three years since the previous tariff set was suspended.
The EU moves to protect itself
European Commission President Ursula von der Leyen said in a statement that the Bullock “will remain open to negotiations at all times.”
“The US is applying tariffs worth $28 billion, so we are dealing with measures worth 26 billion,” she said. The Commission manages trade and commercial disputes on behalf of 27 EU member states.
“We firmly believe that in a world filled with geopolitical and economic uncertainty, it is not our common interest to burden tariffs on our economy,” von der Reyen said.
Trump said his taxes will help create jobs for U.S. factories, but von der Leyen said: Prices will rise. In Europe and the US. ”
“I deeply regret this measure. Tariffs are taxes. They are bad for businesses and even worse for consumers. These tariffs are disrupting the supply chain. They create uncertainty in the economy,” she said.
American business groups encourage consultation
The US Chamber of Commerce on the EU said US tariffs and EU measures “are harmful to the work, prosperity and safety of both sides of the Atlantic.”
“Both sides escalate and need to urgently find out what has been negotiated,” the Chamber of Commerce said Wednesday.
What actually happens?
Trump slapped similar tariffs on EU steel and aluminum during his first term during his inauguration that infuriated Europe and other allies. The EU also imposed measures in retaliation at the time, raising tariffs on US-made motorcycles, bourbon, peanut butter and jeans.
This time, the EU action involves two steps. First on April 1, the committee reintroduces what the EU had called “rebalance measures” that it had had since 2018 and 2020, but was suspended under the Biden administration. Then on April 13, there will be an additional mission targeting 18 billion euros ($19.6 billion) in exports to the US bloc.
EU trade commissioner Malossyvchovich traveled to Washington last month, leaving tariffs to meet with US Secretary of Commerce Howard Lutnick and other top trade officials.
He said Wednesday that it was revealed during his trip that “the EU is not an issue.”
“I have insisted that we avoid unnecessary burdens of measures and measures, but we need a partner for that. Sifchovich told reporters for the European Parliament in Strasbourg, France.
European iron companies support losses
According to Eurofer of the European Steel Association, the EU could lose up to 3.7 million tonnes of steel exports. The US is the second largest export market for EU steel producers, accounting for 16% of all EU steel exports.
The EU estimates that annual trade between the two sides is around $1.5 trillion, accounting for around 30% of global trade. The block has a significant export surplus of goods, which he says is partially offset by US surplus in the trading of services.
David Mchugh reported from Frankfurt. Jill Lawless contributed to this report from London.
An earlier version of this story was revised by showing the title of Marosssiv Chovich, the EU trade commissioner, rather than the vice president of the European Commission.
Original issue: March 12, 2025 7:07am EDT
