EU strikes back: Tariffs target US products in response to Trump's steel, aluminum levy media says

In a recent article, Politico unveils that the EU strongly retaliated against US President Donald Trump's decision about the steel and aluminum tariff, announcing that the European measures will affect high-profile American goods such as Harley-Davidson motorcycles, bourbon, and jeans. 

Thus, the EU declared a two-phase countermeasure targeting 26 billion euros ($28 billion) in EU exports. This marks a significant escalation in the ongoing trade dispute between the two global economic powers. Beginning on April 1, the European Commission revealed that it would reimpose tariffs on 8 billion euros ($8.7 billion) worth of US products in response to the newly implemented US tariffs. By mid-April, additional countermeasures will be introduced, potentially covering over 18 billion euros ($19.6 billion) in new US tariffs, pending approval from EU member states. 

European Commission President Ursula von der Leyen expressed strong disapproval of the US decision. "We deeply regret this measure," she stated. "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 EU's countermeasures far exceed the trade disputes that erupted during Trump's first term, with some European officials voicing frustration over his administration’s approach to international trade. One European steel industry representative warned that Brussels would “go full sledgehammer” in its response due to growing dissatisfaction with Trump's policies. 

The 27-nation EU, home to 450 million people, is keen to demonstrate its resolve in defending its economic interests should Trump escalate the trade conflict further. The transatlantic trade relationship, valued at $1.7 trillion, has been vital to the post-World War II prosperity of both regions. While the US tariffs primarily affect Canada and Mexico, the EU, as the third-largest supplier of steel to the US, is set to bear a significant burden. Brussels is also concerned that additional “reciprocal” tariffs could further impact US exports to the EU, including automobiles, pharmaceuticals, and food products. 

Despite the rising tensions, the European Commission has expressed its willingness to engage with the US administration in search of a negotiated resolution. "We remain ready to work with the US administration to find a negotiated solution," the Commission said, adding that its countermeasures “can be reversed at any time should such a solution be found.”

By Naila Huseynova