On March 12, the United States imposed tariffs of up to 25% on imports of steel, aluminum, and certain products from the European Union. The European Commission is responding with countermeasures to protect European businesses, workers, and consumers from these trade restrictions.
Context: Measures and countermeasures under the previous Trump administration
In June 2018, the first Trump administration introduced tariffs on European steel and aluminum exports, impacting €6.4 billion of EU goods. In January 2020, additional tariffs affected €40 million of EU exports of certain derivatives. The EU responded with a package of rebalancing measures.
The 2018 EU measures were structured in two sets: Annex I (€2.8 billion) and Annex II (€3.6 billion). Annex I took effect immediately, while Annex II was scheduled for June 2021 but both were suspended until March 31, 2025. The 2020 measures will be reinstated on April 1. This followed discussions with the US, which agreed to suspend its 232 tariffs within a certain quota to work on a long-term solution.
The new US measures
The US measures consist of three elements:
- Reinstating the 232 tariffs on steel and aluminum.
- Increasing aluminum tariffs from 10% to 25%.
- Extending to other products, such as household items and machinery.
The tariffs will affect €26 billion of EU exports, resulting in €6 billion in additional import tariffs for US importers.
The EUs response
The Commission has launched a swift and proportionate response with two countermeasures:
- Reimposing suspended 2018 and 2020 measures.
- Implementing a new package of additional measures.
Reimposing suspended countermeasures
On April 1, 2025, the 2018 and 2020 measures will be automatically reinstated. Tariffs will apply to products such as boats and motorbikes.
A new package of additional measures
Due to the broader scope of the new US tariffs, the Commission started the process for additional countermeasures on March 12. These will target €18 billion of goods, together with the reimposed measures from 2018. The aim is to match the total value of EU measures to the increased trade value impacted by the US tariffs.
The first step is a two-week consultation with EU stakeholders to ensure the right products are chosen for the new countermeasures.
The full process to impose additional countermeasures is as follows:
- March 12 - Stakeholder consultations begin:
- The list of targeted products is published on the DG TRADE website.
- The proposed target products include a mix of industrial and agricultural products:
- Industrial products include steel and aluminum products, textiles, leather goods, home appliances.
- Agricultural products include poultry, beef, certain seafood, nuts, eggs, dairy.
- March 26 and following days:
- Stakeholder consultation concludes.
- The Commission assesses stakeholder inputs.
- The Commission finalizes its draft implementing act and consults Member States:
- The legal basis is the Enforcement Regulation (Regulation (EU) No 654/2014).
- This process follows the comitology procedure, inviting Member States to endorse the proposed measures before adoption.
- Mid-April - adoption process concludes and the act imposing countermeasures enters into force.
* Values presented in 2018 prices.