EU imposes retaliatory tariffs on US goods in trade dispute

The European Union has adopted retaliatory measures against US tariffs on EU steel and aluminium, following weeks of discussions between member states, the EU Commission, and various industries.

EU member states on Wednesday approved 25% tariffs on a wide array of US products. The list includes items such as almonds, orange juice, poultry, soyabeans, steel and aluminium, tobacco, and yachts. This action is in response to the 25% tariffs imposed by the United States on imports of steel and aluminium from the EU.

These measures mark the EU’s first retaliatory steps in the trade dispute initiated by US President Donald Trump against global trading partners. The list of targeted products underwent significant lobbying by member states concerned about potential US countermeasures affecting their industries. According to Euronews, Hungary reportedly did not vote in favour of the measures.

France, Ireland, and Italy successfully lobbied for the removal of Bourbon whiskey from the list after President Trump threatened a 200% tariff on European alcohol if it was included. The final list of US goods subject to EU tariffs has not yet been publicly released.

“They [EU tariffs] can be suspended at any time should US agree to a fair & balanced negotiated outcome,” stated Olof Gill, the Commission’s trade spokesperson, on social media platform X.

The value of US imports affected by the EU tariffs will be slightly less than the EU exports impacted by the US duties. Approximately €22 billion worth of US products are expected to be targeted by the EU, while the US tariffs on EU aluminium and steel exports, which came into effect on 12 March, are valued at €26 billion annually.

The implementation timeline for the EU tariffs has also been extended to allow for potential negotiations with the US. The tariffs will come into force between 15 April and 1 December.

These retaliatory measures represent the initial phase of the EU’s response to the US trade dispute. In addition to aluminium and steel, the Trump administration has imposed 25% tariffs on EU cars and “reciprocal” tariffs of 20% on all EU imports, affecting 70% of EU exports to the US.

The EU executive announced on Tuesday that the Commission is currently developing a second package of retaliatory measures, which is expected to be presented early next week.