EU takes tit-for-tat steps against tariffs

The European Union struck back against US tariffs on the bloc's steel and aluminum imports by announcing countermeasures on Wednesday.

The European Commission said it regrets the US decision to impose the steel and aluminum tariffs. The announcement came right after US President Donald Trump's 25 percent tariffs on imports of steel and aluminum, which was announced on Feb 10, took effect on Wednesday morning.

"We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty to the economy. Jobs are at stake. Prices will go up," European Commission President Ursula von der Leyen said.

"The countermeasures we take today are strong but proportionate."

According to the announced countermeasures, the commission will allow the suspension of existing 2018 and 2020 countermeasures against the US to lapse on April 1. These countermeasures target a range of US products that respond to the economic harm inflicted on 8 billion euros ($8.7 billion) of EU steel and aluminum exports.

The EU retaliated against Trump's steel and aluminum tariffs imposed during his first term in 2018 by applying tariffs on US products such as bourbon and motorcycles. The two sides reached a truce later to suspend each other's tariffs. But Trump's new tariff measures literally canceled the suspension deal.

The commission said in response to new US tariffs affecting more than 18 billion euros ($19.6 billion) of EU exports, the bloc was putting forward a package of new countermeasures on US exports. They will take effect by mid-April following consultation of EU member states and stakeholders.

This means the total EU countermeasures could apply to 26 billion euros ($28.4 billion) worth of US goods exports, matching the economic scope of the US tariffs.

Ready for talks

The commission said the EU remains ready to work with the US administration to find a negotiated solution. The measures announced on Wednesday can be reversed at any time should such a solution be found.

"I have entrusted Trade Commissioner Maros Sefcovic to resume his talks to explore better solutions with the US," von der Leyen said.

Sefcovic, who visited Washington last month trying to avert a trade war, had said earlier this week that the US was not "engaging" with the EU.

"A Europe without industry is weak and will not count anything at the international level. Steel means sovereignty. Without steel, there is no defense industry, no construction, no homes, no roads. It is the economic foundation of each country," the European Steel Association, or EUROFER, said on X hours before the announcement of the EU countermeasures.

EUROFER President Henrik Adam said in an early statement that Trump's 25 percent blanket tariffs on all steel imports are "a radical escalation of the trade war launched under his first administration".

"It will further worsen the situation of the European steel industry, exacerbating an already dire market environment," he said.

"Without an immediate tightening of the current safeguard quota regime, the deflection provoked by the new US steel tariffs will inevitably push EU steel capacity into additional idling and, ultimately, closure."

Malte Lohan, CEO of the American Chamber of Commerce to EU, or AmCham EU, which represents US companies in the EU, said on Wednesday that AmCham EU members oppose the new US tariffs.

"These tariffs, along with the EU's countermeasures, will only harm jobs, prosperity and security on both sides of the Atlantic. The two sides must de-escalate and find a negotiated outcome urgently," he said.