The European Union has hit back at the U.S. by introducing new tariffs on American goods worth up to 26 billion euros ($28 billion). This response comes just hours after the Trump administration raised tariffs on steel and aluminum imports to 25%, escalating the ongoing trade tension.
The EU had prepared for the move, but the new tariffs still worsen an already strained relationship across the Atlantic. Just last month, the U.S. had warned Europe that it would have to handle its own security in the future.
The EU’s new duties aren’t limited to steel and aluminum. They will also target American products like motorcycles, bourbon, peanut butter, jeans, textiles, home appliances, and agricultural goods. The tariffs focus on products from key U.S. states, including beef and poultry from Kansas and Nebraska, and wood products from Alabama and Georgia. Even Illinois, the top soybean producer, is affected noted The Associated Press.
The spirits industry is one of the hardest-hit sectors. Chris Swonger, president of the Distilled Spirits Council, said the EU’s move would “severely undercut” efforts to rebuild U.S. whiskey exports, which had surged by 60% in the past three years after previous tariffs were lifted.
European Commission President Ursula von der Leyen made it clear that the EU is open to negotiations. “We will always remain open to negotiation,” she said. “But tariffs are taxes, and they’re bad for business.” Von der Leyen warned that tariffs would hurt jobs, raise prices, and disrupt supply chains on both sides of the Atlantic.
Trump’s reasoning for the tariffs was to create more U.S. factory jobs, but von der Leyen argued that they will hurt consumers and businesses, leading to higher prices and uncertainty in the economy.
The American Chamber of Commerce to the EU expressed concern, saying the tariffs will damage jobs, prosperity, and security on both sides. They urged both the U.S. and the EU to de-escalate and work out a negotiated solution.
During his first term, Trump also imposed tariffs on EU steel and aluminum, leading to similar retaliatory measures from Europe. Now, the EU’s new countermeasures will be rolled out in two phases: first, on April 1, the EU will reintroduce tariffs that were suspended under the Biden administration. Then, on April 13, additional duties will target $19.6 billion worth of U.S. exports.
EU Trade Commissioner Maroš Šefčovič recently traveled to Washington in an attempt to prevent the tariffs, but he noted that it became clear that “the EU is not the problem.” He emphasized that the EU had tried to avoid the additional tariffs, but said it takes both sides to work out an agreement.
The European steel industry is particularly concerned, as it could lose up to 3.7 million tons of exports to the U.S. The U.S. is the second-largest market for EU steel, making up 16% of all EU steel exports.
Trade between the EU and the U.S. is worth about $1.5 trillion annually, representing around 30% of global trade. While the EU has a significant surplus in goods, it is somewhat offset by the U.S. surplus in services trade.
