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Date Published: 12/03/2025

EU retaliates against Trump's tariffs with countermeasures

The European Commission wants to impose trade measures on the US worth €26 billion

The European Union has announced swift retaliatory measures against the United States in response to new tariffs imposed by Washington on European steel and aluminium. The European Commission (EC) has condemned the US decision, calling it "unjustified and damaging" to transatlantic trade.

The EC's response will be implemented in two phases. First, the EU will let previous countermeasures from 2018 and 2020 expire on April 1, affecting US products valued at €8 billion. Second, a new package of trade sanctions, targeting American goods worth over €18 billion, will take effect in mid-April after consultations with EU member states and industry sectors.

The combined measures could impact up to €26 billion worth of US exports, closely matching the estimated €28 billion economic damage caused by the American tariffs. The EC has stated that the new countermeasures are designed to be "smart" and focus on products with high economic and symbolic value.

Targeted goods include soybeans, beef, chicken, household appliances, lawnmowers and Harley-Davidson motorcycles. Many of these items are key exports from US states with strong Republican support, such as Louisiana, Nebraska and Kansas.

These tariffs may mean that the increased cost of importing these products into the European Union is passed onto consumers, resulting in more expensive goods.

A recent European Council summit in Brussels marked a turning point in the EU’s defence strategy, with leaders committing €150 billion to the defence budget over the next decade and urging member states to boost spending amid rising security concerns. With Trump’s wavering support for Ukraine, the EU reaffirmed its backing for Kyiv while navigating internal divisions, particularly Hungary’s resistance.

Despite the strong response, the EU remains open to negotiations. EC President Ursula von der Leyen expressed regret over Washington's decision, warning that tariffs create economic uncertainty, disrupt supply chains, and increase prices for businesses and consumers. She emphasised the need to protect European industries while keeping the door open for diplomatic discussions.

The trade dispute follows the US administration's move to impose 25% tariffs on imported steel and aluminium, affecting exports from the EU as well as other countries, including Brazil, Mexico, South Korea and China.

As the EU prepares to enforce its countermeasures, discussions between trade officials are expected to continue in hopes of reaching a resolution.

Image: European Union

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