April 1 Marks Start of EU's Counter Tariffs on U.S. Imports

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The European Union (EU) announced retaliatory tariffs on U.S. goods worth around 26 billion euros ($28 billion) in response to the Trump administration’s 25% tariffs on steel and aluminum imports, effective April 1. The EU had anticipated these tariffs and prepared for them, but the new measures further strain the already tense relations between the U.S. and Europe. These tariffs will impact not only steel and aluminum but also textiles, home appliances, and agricultural goods like poultry, beef, and seafood. Products such as motorcycles, bourbon, peanut butter, and jeans will also be hit, following similar measures from the first term of President Trump.

Although the U.K. is not part of the EU, it announced it would not impose its own tariffs on the U.S., calling the U.S. decision to levy these duties “disappointing.” The EU, however, emphasized its openness to negotiations and stressed that such tariffs are not in anyone’s best interest, given the uncertain geopolitical and economic climate. European Commission President Ursula von der Leyen highlighted the negative impacts on both the U.S. and EU economies, noting that tariffs are essentially taxes that disrupt business and harm consumers.

In terms of actions, the EU will first reintroduce "rebalancing measures" that were suspended under the Biden administration, followed by additional tariffs on approximately 18 billion euros ($19.6 billion) worth of U.S. exports. The EU has made it clear that the U.S. should be a partner in resolving the trade conflict, as expressed by European Commission Vice President Maroš Šefčovič during his recent trip to Washington.

European steel industries are expected to suffer, with the EU potentially losing up to 3.7 million tons of steel exports. The U.S. is the second-largest export market for EU steel, and this loss could significantly harm the European steel sector.

Transatlantic trade between the U.S. and the EU represents around $1.5 trillion annually, accounting for about 30% of global trade. While the EU has a surplus in goods trade, the U.S. holds a surplus in services trade. In response to the EU's move, the U.K. government emphasized the importance of maintaining strong trade relations with the U.S. and exploring future economic agreements to reduce tariffs and support British businesses.

Paraphrasing text from "AP" all rights reserved by the original author