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This March, the US imposed tariffs of up to 25 percent on imports of steel, aluminium and certain products containing steel and aluminium from the EU; in response, the Commission is launching a series of countermeasures to protect European businesses, workers and consumers from the impact of these unjustified trade restrictions.
Background
It is not the first time that the US Administration imposes tariffs and sanctions on EU’s producers. Thus, in June 2018, the first Trump Administration introduced tariffs on European steel and aluminium exports (known as “section 232” tariffs), targeting €6.4 billion of EU goods (€8 billion based on 2024 flows and values). In January 2020, additional tariffs, affecting around €40 million of EU exports of certain derivative steel and aluminium products, followed. The EU responded to these with a targeted package of so-called “rebalancing measures”.
In 2018, the EU countermeasures were structured into two sets of measures each affecting different product categories targeted €2.8 billion and €3.6 billion worth of goods. A similar EU response followed the second set of US tariffs in 2020.
The new US measures
The US measures implemented on 12 March consist of three key elements (depicted o the list of measures on 99 pages (!) :
a) Reinstating the June 2018 section 232 tariffs on steel and aluminium products covering different types of semi finished and finished products, such as steel pipes, wire and tin foil.
b) Increasing the tariffs imposed on aluminium from the original 10% to 25%.
c) Extending the tariffs to other products, notably: – steel and aluminium products, such as household products like cooking ware or window frames; – products that are only partly made of steel or aluminium, such as machinery, gym equipment, certain electrical appliances or furniture.
In addition, the US Secretary of Commerce establishes by 12 May 2025 a system whereby the US will continue to extend the list of steel and aluminium derivatives products subject to additional duties of up to 25%.
The US tariffs will affect a total of €26 billion of EU exports, which corresponds to approximately 5% of total EU goods exports to the US. Based on current import flows, this will result in US importers having to pay up to €6 billion in additional import tariffs.
The EU’s response
The Commission has launched a swift and proportionate response, designed to defend European interests through two countermeasures: a) the reimposition of the suspended 2018 and 2020 rebalancing measures; b) the imposition of a new package of additional measures.
= As to the reimposing suspended countermeasures, on 1 April 2025, the 2018 and 2020 rebalancing measures will automatically be reinstated once their suspension expires on 31 March. For the first time, these rebalancing measures will be implemented in full. Tariffs will be applied on products ranging from boats to bourbon to motorbikes.
= A new package of additional measures. Since the new US tariffs are significantly broader in scope and affect a significantly higher value of European trade, the Commission launched on 12 March the process to impose additional countermeasures on the US. These will target approximately €18 billion worth of goods, which will then apply together with the reimposed measures from 2018. The objective is to ensure that the total value of the EU measures corresponds to the increased value of trade impacted by the new US tariffs.
The first step in this process is the launch of a two-week consultation with EU stakeholders. These consultations will ensure that the right products are chosen for inclusion in the new countermeasures, ensuring an effective and proportionate response that keeps disruption to EU businesses and consumers to a minimum.
The full process to impose the additional countermeasures is seen in the Commission’s press release at: https://ec.europa.eu/commission/presscorner/detail/en/qanda_25_750