Trade Wars: European Union Retaliates Against U.S. Tariffs on Steel and Aluminum

The European Union (EU) has retaliated against U.S. President Donald Trump’s 25% tariffs imposed on steel and aluminum imports from the continent.

The EU has hit back with its own counter measures, saying the European bloc needs to protect domestic consumers and businesses. Trump confirmed 25% duties on all steel and aluminum imports, which apply to not only Europe but to Canada and Australia as well.

However, Trump backed down on an earlier threat to impose tariffs of up to 50% on metals from Canada. The European Union has responded quickly, imposing counter-tariffs on 26 billion euros ($28.33 billion) worth of American goods starting in April.

‘Strong But Proportionate’

The EU’s approach will see previously suspended tariffs re-imposed on eight billion euros of U.S. imports, and a slew of new countermeasures on 18 billion euros of goods in a move the EU leadership described as “strong but proportionate” in a news release.

The European tariffs apply to industrial-grade steel and aluminum, other steel and aluminum products, and derivative commercial products such as machinery parts. Unlike Mexico, Canada and China, Europe had not been hit by Trump’s tariffs until now. European Commission data shows that the overall EU / U.S. trade in goods and services in 2023 totaled $1.68 trillion.

Machinery and vehicles are the biggest European exports to the U.S., followed by chemicals and pharmaceutical products.

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