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On 12 March, the United States reintroduced tariffs of up to 25% on steel, aluminium, and related products from the EU. In response, the European Commission is reinstating and expanding countermeasures to protect European industries from these trade restrictions.

The latest tariffs revive the "Section 232" duties first imposed in 2018 under the Trump administration. These initially targeted €6.4 billion of EU exports, followed by further tariffs in 2020 affecting €40 million worth of goods. The EU responded at the time with rebalancing measures, applied in two phases. However, in 2021, both sides agreed to suspend these duties to negotiate a longer-term solution. That suspension expires on 31 March 2025, leading to the automatic reinstatement of the EU’s countermeasures on 1 April.

The US has significantly expanded its tariff measures in three ways. It has reinstated the 2018 tariffs on steel and aluminium products. The tariff rate on aluminium has increased from 10% to 25%. The measures now extend to products that contain steel or aluminium, such as cookware, gym equipment, machinery, and furniture. With these changes, the tariffs now impact €26 billion of EU exports—roughly 5% of total EU goods exports to the US—potentially costing US importers an additional €6 billion.

To counter these tariffs, the European Commission is implementing a two-pronged approach. The suspended 2018 and 2020 rebalancing measures will be reinstated on 1 April 2025, covering a range of US products including motorbikes, bourbon, and boats. Given the broader scope of the new US tariffs, the Commission has also launched the process to introduce additional countermeasures covering approximately €18 billion of US goods, ensuring proportionality with the trade affected by the new US measures.

The Commission has initiated a two-week public consultation to finalise the list of targeted products. Industrial goods such as textiles, plastics, and home appliances, as well as agricultural products including poultry, beef, dairy, and vegetables, are under consideration. Following the consultation, the Commission will assess feedback and finalise its countermeasure proposal. Member States will review and endorse the measures under the EU's Enforcement Regulation. The new countermeasures are expected to enter into force by mid-April.  With trade tensions escalating, the EU remains committed to defending its industries while working towards a long-term solution with the US.

Source: European Commission