The workers of the German steel manufacturer Salzgitter AG stand in front of a furnace in a factory in Salzgitter, Germany, March 1, 2018.
Fabian Bimmer | Reuters
The European Union has reacted rapidly to 25% US President Donald Trump’s tariffs on steel and aluminum imports that came into force Wednesday, retaliating with their punitive measures that they said were needed to protect consumers and businesses.
The White House confirmed the tasks – which will affect Canada, Australia, EU and others – late Tuesday, but said Trump no longer planned to raise fees in Canada to 50%.
The EU responded rapidly, saying it would impose counter-directors on 26 billion euros ($ 28.33 billion) of US goods starting in April.
European Commission President Ursula von der Leyen on Wednesday told reporters that the EU “should act to protect businesses and consumers”.
“We have repented deeply to this measure [by the U.S.]. Tariffs are taxes, they are bad for business and worse for consumers, they are disrupting supply chains, they bring uncertainty to the economy, jobs are in discussion, prices are raised and no one needs it, no party needs it, ”she said during a press conference.
Trade links between the JSC and the EU “are the largest in the world,” said Von der Leyen, and the relationship had brought “prosperity and security for millions”, as well as creating jobs on both sides of the Atlantic, noted.
The two-way EU approach will see previously suspended tariffs re-imposed in 8 billion euros in US exports, and a host of new countermeas in 18 billion euros of goods in a move that von der Leyen had described as “strong but proportional”.
“We will always stay open for negotiations,” she added in a statement.
The EU said the tariffs will affect EU exports up to 26 billion euros (28.3 billion) in the SH.BA they apply for steel and aluminum of industrial scale, other semi-finished steel and aluminum products, and also their derivative commercial products, such as parts of machinery and knitting.
Increasing tensions
European Commission President Ursula von Der Leyen participates in a press conference following a special summit of European Union leaders to discuss the protection of Ukraine and Europe in Brussels, Belgium 6 March 2025.
Stephanie Lecocq | Reuters
Unlike Mexico, Canada and China, EU -born products were not hit by Trump’s tariffs until the tasks of steel and aluminum came into force Wednesday.
Tensions between Washington and Brussels have been boiling over since Trump’s inauguration in January, when the White House leader immediately signaled his intention to impose tariffs on the block.
“They have really benefited from us,” Trump said at a Cabinet meeting in February.26, adding: “They do not accept our cars, they do not accept, in essence, our farm products. They use all kinds of reasons why not. And we accept everything from them.”
One of Trump’s biggest mistakes is US trade deficits with a number of leading trade partners, including Canada and the EU.
European Commission data show that the EU had a trade surplus of 155.8 billion euros ($ 159.6 billion) with the US for goods in 2023, but developed a deficit of 104 billion-euros in services. In general, the EU trade of goods and services in 2023 was worth 1.6 trillion euros ($ 1.68 trillion), according to the EU.
Machinery and vehicles make up most of the EU exports to the US from the group of products, followed by chemicals, other goods produced and medicinal and pharmaceuticals.
– Katrina Bishop and Amala Balakrishner of CNBC contributed to the reporting of this story.