The European Union has announced its decision to impose counter tariffs on U.S. goods worth 26 billion euros ($28.33 billion) starting next month, in response to Washington’s tariffs on steel and aluminium. This move marks a significant escalation in trade tensions between the two economic powerhouses.
In a statement released on Wednesday, the European Commission confirmed that it will end the current suspension of tariffs on U.S. products on April 1. Additionally, a new package of countermeasures targeting American goods is expected to be introduced by mid-April.
“This matches the economic scope of the U.S. tariffs. Our countermeasures will be introduced in two steps, starting with April 1 and fully in place as of April 13,” said Ursula von der Leyen, President of the European Commission. She emphasized that while the EU is prepared to take firm action, it remains open to dialogue with the U.S. “We are ready to engage in meaningful dialogue. I have entrusted Trade Commissioner Maros Sefcovic to resume his talks to explore better solutions with the U.S.,” von der Leyen added.
The latest round of tariffs stems from a decision by the U.S. administration to increase duties on steel and aluminium imports by 25%. These new measures took effect on Wednesday as previous exemptions, duty-free quotas, and product exclusions expired. The move has drawn strong criticism from European leaders, who argue that the tariffs unfairly target European industries and undermine transatlantic trade relations.
In response, the EU’s counter tariffs will target a broad range of U.S. exports, potentially including agricultural products, industrial goods, and other key sectors. The European Commission aims to ensure that the economic impact of its measures is equivalent to the damage caused by the U.S. tariffs on European metal industries.
This trade dispute echoes previous tariff wars between the two regions, particularly under former U.S. President Donald Trump’s administration. While President Joe Biden’s administration has sought to mend ties with European allies, the continuation of tariffs indicates that significant economic disagreements remain.
As trade tensions escalate, businesses on both sides of the Atlantic brace for potential disruptions. The coming weeks will be crucial in determining whether negotiations can lead to a compromise or if the dispute will further strain U.S.-EU relations.
