In response to the United States’ imposition of “unjustified” tariffs on EU steel and aluminum imports, the European Commission has swiftly initiated countermeasures targeting US exports to the EU. The Commission views the US tariffs as disruptive to transatlantic trade and detrimental to both businesses and consumers, often resulting in higher prices for goods on both sides of the Atlantic.
The EU’s response has been carefully calibrated through a two-step approach:
Step 1: Suspension of Previous Countermeasures
On 1 April, the Commission will allow the suspension of previously imposed countermeasures, which were introduced in 2018 and 2020. These measures addressed the economic harm caused by US tariffs on €8 billion worth of EU steel and aluminum exports.
Step 2: Introduction of New Countermeasures
In response to the new US tariffs, which affect over €18 billion of EU exports, the Commission will propose a fresh package of countermeasures targeting US goods. These countermeasures are set to take effect by mid-April, following consultations with Member States and stakeholders. Together, these measures will address US exports worth up to €26 billion, effectively matching the scale of the US tariffs on EU goods.
While the Commission is taking these actions, it remains open to negotiating a resolution with the US administration. The proposed countermeasures could be reversed should a mutually agreeable solution be reached.
Ursula von der Leyen, President of the European Commission, emphasized the importance of EU-US trade relations, which are the largest in the world. She stressed that tariffs are detrimental to businesses, consumers, and the global economy, stating, “Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs disrupt supply chains, bring uncertainty, and put jobs at risk. Prices will go up—both in Europe and in the United States.”
She further stated, “The European Union must act to protect consumers and businesses. The countermeasures we are taking today are strong but proportionate, matching the economic scope of US tariffs.” President von der Leyen reaffirmed the EU’s openness to dialogue, adding that Trade Commissioner Maroš Šefčovič would resume talks with the US to explore better solutions.
Next Steps
The Commission’s decision to restore the 2018 and 2020 countermeasures will take immediate effect on 1 April. The process for the new countermeasures will proceed under the EU’s Enforcement Regulation, treating the US tariffs as a safeguard measure. The first step in this process will be a two-week stakeholder consultation, running until 26 March. After collecting input from stakeholders, the Commission will finalize its proposal and consult with Member States through the comitology process. The Commission aims to finalize and implement the legal act for the countermeasures by mid-April.
The EU remains committed to finding a negotiated solution to avoid further escalation and to maintain strong, mutually beneficial trade relations with the United States.
