Response from Brussels

Immediate retaliation to the “unjustified and unfair” US duties decided early in the morning by the European Union, just hours after Donald Trump’s 25% imposition of duties on European steel and aluminum imports, with both sides now facing trade.

The Commission said its measures would affect imports of US products of up to 26 billion euros as a “proportional” measure in US duties in European imports with immediate effect on April 1, leaving a short time for negotiations with the US.

Ursula von der Laien expressed her regret over Trump’s decision, stressing that the duties are “bad for businesses and even worse for consumers”, as they “cause uncertainty to the economy. The jobs are in danger, prices go up. “

A month ago, the US president signed an executive decree imposing 25% duties on steel and aluminum imports and all related products, affecting European imports of 26 billion euros. The EU had then warned that it would not hesitate to respond immediately with “retaliation” if the US was imposing.

Germany is the Member State with the highest volume of steel exports to the US. During Trump’s first term, the EU responded to similar duties with countermeasures of 2.8 billion euros to US products.

EU retaliation will be applied in two phases

On April 1st, the EU will restore the countermeasures that were in force from 2018 to 2020 and was suspended (after an agreement with the previous administration of Joe Biden). The measures will target emblematic American products such as whiskey, Harley Davidson motorcycles and will “cover” financial loss of 8 billion euros.

By mid -April, the EU will impose a new round of measures as a “response” to US duties, which will affect imports of EUR 18 billion, raising the total cost of “block” to 26 billion to respond proportionally to the corresponding US duties.

In the list for the second phase – about 99 pages – including aluminum and steel industrial products, leather species, as well as agricultural products such as poultry, beef, soy beans, sugar, vegetables. In essence, products that the EU can supply from other countries, such as Argentina, without much cost for itself, explains sources from the Commission.

Von der Layen, however, appears ready for negotiations with Washington, giving the relevant command to Commissioner Maros Shefkovic in order to find “alternative” solutions in the coming weeks.