EU Prepares to Impose Retaliatory Tariffs on U.S. Imports

The European Union (EU) will start to impose its first round of retaliatory tariffs on U.S. imports on April 15. This decision appears to be made in direct response to the underlying announcement of U.S. tariffs on steel and aluminum. Maros Sefcovic, the EU’s commissioner for trade and economic security, underscored the package’s intended response. It seeks to defend European businesses and consumers who are subject to the discriminatory effects of the U.S. measures that have a serious extra-territorial economic impact.

In early April, the U.S. President Donald Trump announced a 25% tariff on imported steel and aluminum. This decision was met with lightning speed response from within the EU. The European Commission has sounded the alarm that U.S. tariffs are wreaking havoc on European exports. In doing so, they affect an estimated 380 billion euros, nearly 70 percent of overall exports to the United States. The EU is facing down a 20 percent tariff on nearly all its imports from the U.S. This growing unease is exacerbating the ongoing trade conflict between the two economies.

Sefcovic underlined that the EU stands prepared to put these tariffs into effect. It would rather see a negotiated outcome that meets the interests of both sides. The European Commission was equally adamant on this point. They insisted that the EU shares the U.S.’s view the tariffs are unjustified and damaging to both economies and the global market. The EU has stated its clear preference to find negotiated outcomes with the U.S., which would be balanced and mutually beneficial.

European Commission President Ursula von der Leyen is willing to negotiate. She seems very keen to engage with the U.S. administration. She remarked, “We are prepared to respond,” and added that it is “not too late to address concerns through negotiations.” This shows the EU’s willingness to settle the dispute peacefully instead of raising tensions even higher.

The retaliatory measures announced last month target a wide range of goods, reflecting the EU’s commitment to protect its interests. As the picture continues to change, the EU is still readying up additional retaliatory measures should talks not produce acceptable outcomes.