German steelmaker workers Salzgitter AG stands in front of a furnace at Salzgitter factory in Germany on March 1, 2018.
Fabian Bimer | Reuters
The European Union responded quickly to President Donald Trump’s 25% tariffs on steel and aluminum imports that came into effect Wednesday, retaliating with its own punitive measures that it said was necessary to protect consumers and businesses.
The White House confirmed missions that affect Canada, Australia, the EU and others late Tuesday, but said Trump is no longer planning to raise metal tariffs from Canada to 50%.
The EU has responded quickly, saying it will impose counter-offenses on US goods worth 26 billion euros ($28.333 billion) starting in April.
European Commission President Ursula von der Leyen told reporters on Wednesday that the EU “must act to protect businesses and consumers.”
“We deeply regret this measure (by the US). Tariffs are taxes, bad for businesses and worse for consumers. They disrupt supply chains and create uncertainty for the economy.
Trade ties between the US and the EU are “the largest in the world,” von der Reyen said. The relationship, she noted, has brought “prosperity and security to millions of people,” and has created job creation on both sides of the Atlantic.
Two extended approaches in the EU have seen the previously suspended tariffs reimposed on 8 billion euros of US exports, and many new measures are seen on 18 billion euros of goods on the move, which Von Der Leyen previously described as “strong but proportional.”
“We will always remain open to negotiations,” she added in a statement.
The EU said tariffs will affect EU exports worth up to 26 billion euros (28.3 billion) to the US, which apply to industrial steel and aluminum, other semi-defined and finished products of steel and aluminum, as well as derivative commercial products such as mechanical parts and knitting needles.
The tension is rising
European Commission President Ursula von der Leyen will attend a press conference after a special summit of European Union leaders to discuss Ukraine and European defense in Brussels, Belgium on March 6, 2025.
Stephanie Lecock | Reuters
Unlike Mexico, Canada and China, EU-origin products were not hit by Trump’s tariffs until its steel and aluminum obligations came into effect on Wednesday.
Tensions between Washington and Brussels have been boiling since Trump’s inauguration in January, when White House leaders signaled their intention to impose tariffs on the block soon.
“They really took advantage of us,” Trump said at a cabinet meeting on February 26th, “They don’t accept our cars, essentially our produce. They don’t use any kind of reasons.
One of Trump’s biggest bugbears is the US trade deficit with many major trading partners, including Canada and the EU.
European Commission data shows that the EU trade surplus had a trade surplus of 155.8 billion euros ($159.6 billion) in the US in 2023, but achieved a deficit of 100 billion euros in services. Overall, according to the EU, EU-US trade in 2023 was worth 1.6 trillion euros ($1.68 trillion).
Machinery and vehicles constitute the largest EU export to the US by product group, followed by chemicals, other manufactured goods, pharmaceuticals and pharmaceuticals.
– Katrina Bishop and Amala Balakrishner of CNBC contributed a report to this story.
