EU hits back at Donald Trump's steel tariffs, imposes retaliatory 25% on US steel and aluminium products from April 1

The The European Union on March 12 announced retaliatory trade measures in after United States President Donald Trump hiked tariffs on imported steel and aluminum products to 25 per cent, according to an AP report. The EU's countermeasures will be implemented starting April 1.

This comes after the Donald Trump administration officially raised tariffs on all steel and aluminum imports to 25 per cent. The EU's countermeasures, worth 26 billion euros (equivalent to the $28 billion tariffs from the US side), will come into effect from April 1, the report added.

Besides the steel and aluminium tariffs, these measures also include duties on industrial and agricultural products. This was announced by European Commission President Ursula von der Leyen. The body manages trade and commercial conflicts on behalf of the 27 member countries.

EU's Countermeasues: What Did Ursula von der Leyen Say?

“As the US are applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros ($28 billion),” von der Leyen said in a statement. She added that the EU will “always remain open to negotiation”.

“We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs. Jobs are at stake. Prices will go up. In Europe and in the US,” she added.

von Leyen also expressed regret at the move, saying, “We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy.”

EU's Retaliatory Tariffs: What Will This Impact?

• The EU's retaliatory measures include tariffs on aluminum products, home appliances, house tools plastics and wood, leather goods, textiles and steel products.
• Agricultural products such as eggs, beef, nuts, poultry, some seafood, sugar and vegetables will also be impacted.
• Steel companies in Europe are bracing for losses, the report noted. Henrik Adam, president of the Eurofer European steel association told the agency that tha tariffs will “further worsen the situation of the European steel industry” and the “dire market environment”.
• According to Adam, the EU could lose up to 3.7 million tonnes of steel exports that “cannot be compensated by other markets”. Notably, the US, with 16 per cent of the buy, is the second biggest exporter of European steel.

(With inputs from AP)