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EU Strikes Back at U.S.: Enacts $28 Billion in Tariffs in Response to Trump's Steel and Aluminum Taxes
Here's the lowdown:
The European Union tossed an economic punch worth approximately $28 billion at the U.S., in response to President Donald Trump's 25% tariffs on all steel and aluminum imports.
Keen Facts:
The European Commission railed against the unjustified U.S. tariffs on steel and aluminum from the union and declared it has instigated "swift and proportionate countermeasures" starting April 1. These measures will supersede the "existing 2018 and 2020 countermeasures" against the U.S. that will expire next month, affecting a range of U.S. products equivalent to the economic harm inflicted on €8 billion ($8.72 billion) of EU steel and aluminum exports.
The commission is also prepping a new set of countermeasures to address Trump's fresh tariffs, which affect more than €18 billion ($19.61 billion) of EU exports, expected to be implemented in mid-April after a consultation with member states and stakeholders.
In total, these countermeasures will hit U.S. exports worth up to €26 billion ($28.33 billion), matching the economic scale of the U.S. tariffs.
Crucial Quote:
Ursula von der Leyen, the president of the European Commission, asserted, "Tariffs are taxes. They're bad for businesses, and even worse for consumers...Jobs are at risk. Prices will rise. In Europe and in the United States...The countermeasures we're implementing today are strong but proportionate. As the U.S. is imposing tariffs worth $28 billion, we’re responding with countermeasures worth €26 billion."
Big Number:
The EU said U.S. importers would have to cough up an additional €6 billion ($6.55 billion) in tariffs for importing steel from the European Union, based on current inflows. The $28 worth of goods EU impacted by Trump's latest tariffs account for around 5% of the bloc's exports to the U.S.
What U.S. Goods Face the Heat?
EU member states have initiated talks on what U.S. products will face the heat in the second wave of tariffs set for implementation in mid-April. According to the commission, potential targets include industrial products like steel, aluminum, textiles, leather goods, home appliances, and agricultural products such as poultry, beef, seafood, dairy, nuts, sugar, and vegetables. An EU official told the Financial Times that soybeans from the U.S., a major crop in Louisiana, the home state of House Speaker Mike Johnson, were among the possible tariff targets. The initial set of countermeasures set to commence on April 1 will revive tariffs on items like U.S.-made motorcycles, bourbon, peanut butter, and jeans, initially imposed during the previous Trump term.
To Tariff or Not to Tariff?
The British government expressed displeasure about the steel and aluminum tariffs but indicated it won't enact immediate retaliatory measures. Business Secretary Jonathan Reynolds stated they are "focused on a pragmatic approach" and are "rapidly negotiating a broader economic agreement with the U.S. to eliminate additional tariffs." However, Reynolds noted that a countermeasure wasn't off the table, and Britain "won't hesitate to respond in the national interest." The trade body UK Steel also scorned the tariffs, with its Director General Gareth Stace declaring, "President Trump must surely recognize that the United Kingdom is an ally, not a foe. Our steel sector is not a threat to the U.S., but a partner to key customers." Australian Prime Minister, Anthony Albanese, denounced the tariffs as "entirely unjustified" and stated this violated "the spirit of our two nations' enduring friendship." Albanese declared he intends to continue pushing Trump to carve out an exemption for Australian exports—something he agreed to grant during his first term—but admitted that the president had turned a deaf ear to his recent attempts at dialogue.
- The European Union has announced retaliatory tariffs worth approximately $28 billion on U.S. imports, in response to President Donald Trump's 25% tariffs on steel and aluminum.
- Ursula von der Leyen, the president of the European Commission, deemed the U.S. tariffs on European steel and aluminum unjustified and indicated that these tariffs have instigated "strong but proportionate countermeasures."
- The European Commission is preparing a new set of countermeasures to address Trump's fresh tariffs affecting more than €18 billion ($19.61 billion) of EU exports, which may include industrial products, textiles, leather goods, home appliances, agricultural products, and potentially soybeans from Louisiana.