Employees of German metal producer Salzgitter AG stand in entrance of a furnace at a plant in Salzgitter, Germany, March 1, 2018.
Fabian Bimmer | Reuters
The European Union has reacted swiftly to U.S. President Donald Trump’s 25% tariffs on metal and aluminum imports that got here into impact Wednesday, retaliating with its personal punitive countermeasures that it stated have been wanted to guard shoppers and companies.
The White Home confirmed the duties — which is able to have an effect on Canada, Australia, the EU and others — late Tuesday, however stated that Trump now not deliberate to boost tariffs on the metals from Canada to 50%.
The EU responded swiftly, saying it will impose counter-tariffs on 26 billion euros ($28.33 billion) value of U.S. items beginning in April.
European Fee President Ursula von der Leyen on Wednesday informed reporters that the EU “should act to guard companies and shoppers.”
“We deeply remorse this measure [by the U.S.]. Tariffs are taxes, they’re dangerous for enterprise and worse for shoppers, they’re disrupting provide chains, they bring about uncertainty for the economic system, jobs are at stake, costs are up and no one wants that, neither facet wants that,” she stated throughout a information convention.
Commerce ties between the U.S. and EU “are the most important on this planet,” von der Leyen stated, and the connection had introduced “prosperity and safety to hundreds of thousands of individuals” in addition to job creation on each side of the Atlantic, she famous.
The EU’s two-pronged method will see beforehand suspended tariffs reimposed on 8 billion euros of U.S. exports, and a slew of latest countermeasures on 18 billion euros of products in a transfer von der Leyen had earlier described as “robust however proportionate.”
“We’ll at all times stay open to negotiation,” she added in a press release.
The EU stated the tariffs will have an effect on as much as 26 billion euros (28.3 billion) value of EU exports to the U.S. They apply to industrial-grade metal and aluminum, different metal and aluminum semi-finished and completed merchandise, and likewise their by-product business merchandise, corresponding to equipment elements and knitting needles.
Rising tensions
European Fee President Ursula von der Leyen attends a press convention after a European Union leaders’ particular summit to debate Ukraine and European protection, in Brussels, Belgium March 6, 2025.
Stephanie Lecocq | Reuters
In contrast to Mexico, Canada and China, EU-origin merchandise had not been hit by Trump’s tariffs till the metal and aluminum duties got here into impact Wednesday.
Tensions between Washington and Brussels have been simmering since Trump’s inauguration in January, when the White Home chief instantly signaled his intention to impose tariffs on the bloc.
“They’ve actually taken benefit of us,” Trump stated in a Cupboard assembly on Feb.26, including: “They do not settle for our automobiles, they do not settle for, basically, our farm merchandise. They use all kinds of the reason why not. And we settle for all the things of them.”
One in all Trump’s greatest bugbears is the U.S.’ commerce deficits with various key buying and selling companions, together with Canada and the EU.
European Fee information present that the EU had a commerce surplus of 155.8 billion euros ($159.6 billion) with the U.S. for items in 2023, however ran a 104-billion-euros deficit on providers. Total, EU-U.S. commerce in items and providers in 2023 was value 1.6 trillion euros ($1.68 trillion), in accordance the to EU.
Equipment and autos make up the biggest chunk of EU exports to the U.S. by product group, adopted by chemical substances, different manufactured items and medicinal and pharmaceutical merchandise.
— CNBC’s Katrina Bishop and Amala Balakrishner contributed reporting to this story.
