The European Commission announced on Wednesday that the European Union will impose counter-tariffs on €26 billion ($28 billion) worth of U.S. goods starting next month, escalating the ongoing global trade war. The move comes in response to broad U.S. tariffs on steel and aluminum. Despite the retaliatory measures, the EU emphasized that it remains open to negotiations, stating that higher tariffs serve no one’s best interests.
The bloc aims to impose the new duties in two steps, matching the economic scope of the US measures. On April 1, the EU will reintroduce tariffs on steel and aluminum, which were suspended under the Biden administration. They will be fully in place on April 13.
These levies will affect nearly every country that exports the metals to the United States, including Canada – the most significant foreign supplier of these raw materials to the United States – Brazil, Mexico, South Korea, and others. The levies also apply to hundreds of downstream products that use these metals, such as nuts and bolts or bulldozer blades. Michael DiMarino, a 17-person Brooklyn-based manufacturer of aerospace parts called Linda Tool, says his costs have increased since Trump’s tariff announcements. But he warned that the threat of a global trade war could backfire. “I think it’s just going to end up hurting everybody in the long run,” he said.
EU Trade Commissioner Maros Sefcovic traveled to Washington last month to avoid tariffs. He met with Howard Lutnick, the Commerce Department’s chief cabinet secretary. He was joined by ministers and officials engaged in regular discussions on the issue with their counterparts in Washington.
The world’s largest trading bloc was expecting the US tariffs and prepared in advance, but they still significantly strained already tense transatlantic relations. Only last month, Washington warned Europe to take care of its security in the future.
As a result, many countries have vowed to respond in kind. On Wednesday, British Business and Trade Secretary Jonathan Reynolds said that “all options” remained on the table, including imposing tit-for-tat tariffs. Australian Prime Minister Anthony Albanese described the US decision as “entirely unjustified.”
The Trump administration threatens to impose tariffs on all imported steel and aluminum, from automobiles to stainless steel sinks. The move ratchets tensions on an international scale, jolting investors, consumers, and businesses and raising fears of a global trade war. Economists warn the move will lead to higher prices, fewer jobs, and slower economic growth. It is the latest in a series of protectionist moves by the White House, which has sought to shield domestic producers from foreign competition. The seesawing policy has spooked markets and raised worries about a global economic slowdown. The EU’s reaction to the new US duties shows that trade disputes will continue to have significant global economic repercussions.
