European Union imposes retaliatory tariffs on $20bn of US goods in response to Trump’s steel and aluminium duties

The countermeasures, in answer to tariffs on steel and aluminium imports to the US from the EU, mean that the EU can apply retaliatory tariffs on more than €20 billion of US products. It has been reported that the retaliatory tariffs will affect specific goods imported from the US at a rate of up to 25%, and will come into effect from 15 April.

The countermeasures were voted through by the member states following a meeting with representatives of the automotive industry by EU president Ursula von der Leyen yesterday, which included the likes of Stellantis, BMW, VW Group, Daimler Truck, Volvo Cars and Bosch.

In the meeting, participants voiced strong concerns about the broader implications of the US tariffs, particularly the risk of trade diversion. According to the European Commission, the participants highlighted the uncertainty these measures create for supply chains, and encouraged the commission to implement its competitiveness agenda.

In a statement confirming the approval of the countermeasures, the European Commission said: “The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the US, which would be balanced and mutually beneficial.”

The retaliatory tariffs can be suspended at any time, “should the US agree to a fair and balanced negotiated outcome”.