Thu. Mar 27th, 2025
U.S. tariffs: Maroš Šefčovič and Ursula von der Leyen explaing EU countermeasures.
U.S. tariffs: Maroš Šefčovič and Ursula von der Leyen explaing EU countermeasures. Source: EC - Audiovisual Service

Brussels, 12 March 2025

In response to the imposition of new, unjustified US tariffs on EU steel and aluminium imports, the Commission has launched swift and proportionate countermeasures on US imports into the EU.

The Commission regrets the US decision to impose such tariffs, considering them unjustified, disruptive to transatlantic trade, and harmful to businesses and consumers, often resulting in higher prices.

The Commission’s response is carefully calibrated, based on a two-step approach:

  • First, the Commission will allow the suspension of existing 2018 and 2020 countermeasuresagainst the US to lapse on 1 April. These countermeasures target a range of US products that respond to the economic harm done on €8 billion of EU steel and aluminium exports.
  • Second, in response to new US tariffs affecting more than €18 billion of EU exports, the Commission is putting forward a package of new countermeasures on US exports. They will come into force by mid-April, following consultation of Member States and stakeholders.

In total, the EU countermeasures could therefore apply to US goods exports worth up to €26 billion, matching the economic scope of the US tariffs.

In the meantime, the EU remains ready to work with the US administration to find a negotiated solution. The abovementioned measures can be reversed at any time should such a solution be found.

President of the European Commission, Ursula von der Leyen, said:

“The trade relations between the European Union and the US are the biggest in the world. They have brought prosperity and security to millions of people, and trade has created millions of jobs on both sides of the Atlantic. As of this morning the United States is applying a 25% tariff on imports of steel and aluminium. 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. Jobs are at stake. Prices will go up. In Europe and in the United States. The European Union must act to protect consumers and business. The countermeasures we take today are strong but proportionate. As the US are applying tariffs worth 28 billion dollars, we are responding with countermeasures worth €26 billion. This matches the economic scope of the US tariffs. Our countermeasures will be introduced in two steps. Starting with 1 April and fully in place as of 13 April. In the meantime, we 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. We are ready to engage in meaningful dialogue. I have entrusted Trade Commissioner Maroš Šefčovič to resume his talks to explore better solutions with the US.”

Next steps

The decision by the Commission to restore the 2018 and 2020 countermeasures against the US will take immediate effect on 1 April.

The process launched by the Commission in response to new US tariffs will proceed under the EU’s Enforcement Regulation, considering the US measure effectively as a safeguard measure. As the first step in this process, a two-week stakeholder consultation will run until 26 March. On the basis of the collected input, the Commission will finalise its proposal for the adoption of countermeasures, and consult Member States under the so-called comitology process. Once this process is completed, the Commission aims to have the legal act imposing the countermeasures in place by mid-April.

Background

In June 2018, the first US administration under President Trump introduced tariffs on €6.4 billion* (€8 billion based on 2024 flows and values) of European steel and aluminium exports. In January 2020, additional tariffs, affecting around €40 million of EU exports of certain derivative steel and aluminium products, followed. In response, in June 2018, the EU introduced its countermeasures on €2.8 billion of US exports to the EU* (a similar EU response followed the second set of US tariffs in 2020). The remaining rebalancing measures, affecting exports valued up to €3.6 billion*, were scheduled to enter into force on 1 June 2021. Following discussions with the US on tariff-based quota system for EU exporters, the EU suspended these measures until 31 March 2025 in order to give space for the parties to work out a longer-term solution.

On 10 February 2025, the US announced that it would impose 25% tariffs on imports of steel and aluminium and derivative products. President von der Leyen immediately warned that such tariffs are “bad for business, worse for consumers” and would trigger a firm and proportionate European response.

The US tariffs of up to 25% will apply on industrial-grade steel and aluminium, other steel and aluminium semifinished and finished products, and also their derivative commercial products (from machinery parts to knitting needles), covering up to €26 billion worth of EU exports to the US.

*Values presented are in then current prices.

More Information

* Updated on 12/03/2025 at 08:57

Quote(s)

The trade relations between the European Union and the US are the biggest in the world. They have brought prosperity and security to millions of people, and trade has created millions of jobs on both sides of the Atlantic. As of this morning the United States is applying a 25% tariff on imports of steel and aluminium. 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. Jobs are at stake. Prices will go up. In Europe and in the United States. The European Union must act to protect consumers and business. The countermeasures we take today are strong but proportionate. As the US are applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euro. This matches the economic scope of the US tariffs. Our countermeasures will be introduced in two steps. Starting with 1 April and fully in place as of 13 April. In the meantime, we 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. We are ready to engage in meaningful dialogue. I have entrusted Trade Commissioner Maroš Šefčovič to resume his talks to explore better solutions with the US.

Ursula von der Leyen, President of the European Commission

 

EU-US trade relations are currently well balanced, as well as hugely profitable to both sides. We should be making this great relationship stronger, not weaker. Sadly, the tariffs imposed by the US today go firmly in the wrong direction. While the EU will continue to engage towards finding win-win deals, we have made clear from the start that unjustified tariffs on our exports will not go unanswered, and we will not shy away from protecting our legitimate economic interests. In relation to steel and aluminium, we share some of the challenges – for instance, on global overcapacities driven by non-market practices – and the EU is therefore part of the solution, rather than a problem.

Maroš Šefčovič, Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency

Source – EU Commission

 


EU countermeasures on US steel and aluminium tariffs explained

Brussels, 12 March 2025

On 12 March, the United States imposed tariffs of up to 25% on imports of steel, aluminium, and certain products containing steel and aluminium from the European Union and other trading partners. In response, the Commission is launching a series of countermeasures to protect European businesses, workers and consumers from the impact of these unjustified trade restrictions.

Context: measures and countermeasures imposed under the previous Trump administration

In June 2018, the first Trump Administration introduced tariffs on European steel and aluminium exports (known as “section 232” tariffs), targeting €6.4 billion of EU goods* (€8 billion based on 2024 flows and values). In January 2020, additional tariffs, affecting around €40 million* of EU exports of certain derivative steel and aluminium products, followed. The EU responded to these with a targeted package of so-called “rebalancing measures”.

In 2018, the EU countermeasures were structured into two sets of measures (Annexes I and II), each affecting different product categories. Annex I targeted €2.8 billion worth of US goods, while Annex II was to target €3.6 billion worth of goods. A similar EU response followed the second set of US tariffs in 2020.

Concerning the 2018 rebalancing measures, while Annex I came into effect immediately in June 2018, Annex II was scheduled to enter into force in June 2021. Before the scheduled implementation of Annex II, the EU suspended all measures (i.e. both Annexes) until 31 March 2025. The 2020 EU rebalancing measures will also be coming back on 1 April. This followed discussions with the US which agreed to suspend its 232 tariffs on EU exporters within a certain quota. This provided both sides with space to work together on a longer-term solution through a global arrangement that would address carbon intensity and global overcapacity.

The new US measures

The US measures implemented on 12 March consist of three key elements:

  • Reinstating the June 2018 section 232 tariffs on steel and aluminium products. These covered different types of semifinished and finished products, such as steel pipes, wire and tin foil.
  • Increasing the tariffs imposed on aluminium from the original 10% to 25%.
  • Extending the tariffs to other products, notably:
    • Steel and aluminium products, such as household products like cooking ware or window frames.
    • Products that are only partly made of steel or aluminium, such as machinery, gym equipment, certain electrical appliances or furniture.

In addition, the US Secretary of Commerce will establish by 12 May 2025 a system whereby the US will continue to extend the list of steel and aluminium derivatives products subject to additional duties of up to 25%.

The US tariffs will affect a total of €26 billion of EU exports, which corresponds to approximately 5% of total EU goods exports to the US. Based on current import flows, this will result in US importers having to pay up to €6 billion in additional import tariffs.

The EU’s response

The Commission has launched a swift and proportionate response, designed to defend European interests through two countermeasures:

  • The reimposition of the suspended 2018 and 2020 rebalancing measures;
  • The imposition of a new package of additional measures.

Reimposing suspended countermeasures

On 1 April 2025, the 2018 and 2020 rebalancing measures will automatically be reinstated once their suspension expires on 31 March. For the first time, these rebalancing measures will be implemented in full. Tariffs will be applied on products ranging from boats to bourbon to motorbikes.

A new package of additional measures

Since the new US tariffs are significantly broader in scope and affect a significantly higher value of European trade, the Commission launched on 12 March the process to impose additional countermeasures on the US. These will target approximately €18 billion worth of goods, which will then apply together with the reimposed measures from 2018. The objective is to ensure that the total value of the EU measures corresponds to the increased value of trade impacted by the new US tariffs.

The first step in this process is the launch of a two-week consultation with EU stakeholders. These consultations will ensure that the right products are chosen for inclusion in the new countermeasures, ensuring an effective and proportionate response that keeps disruption to EU businesses and consumers to a minimum.

The full process to impose the additional countermeasures is as follows:

  • 12 March – Stakeholder consultations begin:
    • The list of targeted products proposed by the Commission is published on the DG TRADE website.
    • The proposed target products include a mixture of industrial and agricultural products:
      • Industrial products include i.a.- steel and aluminium products, textiles, leather goods, home appliances, house tools, plastics, wood products.
      • Agricultural products include i.a.- poultry, beef, certain seafood, nuts, eggs, dairy, sugar and vegetables.
  • 26 March and following days:
    • Stakeholder consultation concludes.
    • The Commission consolidates and assesses the stakeholder inputs.
    • The Commission finalises its draft implementing act and consult the Member States on it:
      • The legal basis for this act will be the Enforcement Regulation (Regulation (EU) No 654/2014), as we consider the US measures to be safeguards.
      • This process will follow the comitology procedure, whereby EU Member States will be invited to endorse the proposed measures before they are adopted.
  • Mid-April – the adoption process concludes and the act imposing the countermeasures enters into force.

* Values presented in 2018 prices.

Source – EU Commission

 


Press statement by President von der Leyen and EU Commissioner Šefčovič on EU countermeasures to US tariffs

Strasbourg, 12 March 2025

The trade relations between the European Union and the United States are the biggest in the world. They have brought prosperity and security to millions of people. And trade has created millions of good jobs on both sides of the Atlantic. As of this morning, the United States is applying a 25% tariff on imports of steel and aluminium. We deeply regret this measure. Tariffs are taxes. They are bad for business, and worse for consumers. They are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. Nobody needs that – on both sides, neither in the European Union nor in the United States.

The European Union must act to protect consumers and business. The countermeasures we take today are strong but proportionate. As the United States are applying tariffs worth USD 28 billion, we are responding with countermeasures worth EUR 26 billion. This matches the economic scope of the tariffs from the United States.

Our countermeasures will be introduced in two steps, starting with 1 April and fully in place as of 13 April. In the meantime, we will always remain open to negotiations.

We firmly believe that in a world fraught with geoeconomic and political uncertainties, it is not in our common interest to burden our economies with such tariffs. We are ready to engage in a meaningful dialogue. I have entrusted Trade Commissioner MarošŠefčovič to resume his talks to explore better solutions with the United States.

 

EU Commissioner Maroš Šefčovič:

Thank you, Madame President.

Let me start by echoing the sentiments of regret. Today’s tariffs from the United States take us in the wrong direction and the reason is manyfold. The EU-US trade partnership is well balanced and highly profitable to both sides. On steel and aluminium particularly, we share some of the challenges – for instance, global overcapacities driven by non-market practices – and the European Union is part of the solution, not the problem.

Last month, during my visit to Washington to raise these points, it was indeed clear that the European Union isn’t the problem, making today’s measures even more unjustified. I argued to avoid the unnecessary burden of measures and countermeasures. But you need both hands to clap.

The US Administration has opted to pursue a harmful course of unjustified tariffs, leaving us with no choice but to respond – and that’s exactly what we are doing.

First, as of April, we will automatically reinstate our currently suspended rebalancing measures from 2018 and 2020, effectively targeting EUR 4.5 billion worth of US goods exported to us.

Second, the Commission is taking decisive steps towards a package of additional countermeasures applying to EUR 18 billion of US exports to the EU.

Over the next two weeks, we will consult with key stakeholders to help us shape this new package:

The objective is to counterbalance the increased trade value affected by the US tariffs, while minimising the impact on European businesses and consumers. But the disruption caused by tariffs is avoidable if the US Administration accepts our extended hand and works with us to strike a deal.

Under the President’s leadership, I am ready to negotiate. We are ready to make it happen.

Source – EU Commission

 


Insight EU recommends the Free and Fair Trade radio address by former U.S. President Ronald Reagan

Source: The Reagan Library on YouTube.

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