Employees of German metal producer Salzgitter AG stand in entrance of a furnace at a plant in Salzgitter, Germany, March 1, 2018.
Fabian Bimmer | Reuters
The European Union has reacted swiftly to U.S. President Donald Trump‘s 25% tariffs on metal and aluminum imports that got here into impact Wednesday, retaliating with its own punitive countermeasures that it mentioned had been wanted to guard customers and companies.
The White Home confirmed the duties — which can have an effect on Canada, Australia, the EU and others — late Tuesday, however mentioned that Trump now not deliberate to boost tariffs on the metals from Canada to 50%.
The EU responded swiftly, saying it will impose counter-tariffs on 26 billion euros ($28.33 billion) price of U.S. items beginning in April.
European Fee President Ursula von der Leyen on Wednesday instructed reporters that the EU “should act to guard companies and customers.”
“We deeply remorse this measure [by the U.S.]. Tariffs are taxes, they’re dangerous for enterprise and worse for customers, they’re disrupting provide chains, they bring about uncertainty for the financial system, jobs are at stake, costs are up and no one wants that, neither facet wants that,” she said during a news conference.
Commerce ties between the U.S. and EU “are the largest on the planet,” von der Leyen mentioned, and the connection had introduced “prosperity and safety to thousands and thousands of individuals” in addition to job creation on either side of the Atlantic, she famous.
The EU’s two-pronged method will see beforehand suspended tariffs reimposed on 8 billion euros of U.S. exports, and a slew of recent countermeasures on 18 billion euros of products in a transfer von der Leyen had earlier described as “sturdy however proportionate.”
“We’ll at all times stay open to negotiation,” she added in a statement.
The EU mentioned the tariffs will have an effect on as much as 26 billion euros price of the bloc’s exports to the U.S. They apply to industrial-grade metal and aluminum, different metal and aluminum semifinished and completed merchandise, and likewise their spinoff business merchandise, reminiscent of equipment elements and knitting needles.
Rising tensions
European Fee President Ursula von der Leyen attends a press convention after a European Union leaders’ particular summit to debate Ukraine and European protection, in Brussels, Belgium March 6, 2025.
Stephanie Lecocq | Reuters
Not like Mexico, Canada and China, EU-origin merchandise had not been hit by Trump’s tariffs till the metal and aluminum duties got here into impact Wednesday.
Tensions between Washington and Brussels have been simmering since Trump’s inauguration in January, when the White Home chief instantly signaled his intention to impose tariffs on the bloc.
“They’ve actually taken benefit of us,” Trump mentioned in a Cupboard assembly on Feb. 26, including: “They do not settle for our automobiles, they do not settle for, basically, our farm merchandise. They use all types of the explanation why not. And we settle for every little thing of them.”
One in every of Trump’s largest bugbears is the U.S. commerce deficits with plenty of key buying and selling companions, together with Canada and the EU.
Data from the European Commission, the manager arm of the EU, mentioned the bloc had a commerce surplus of 155.8 billion euros with the U.S. for items in 2023, however ran a 104 billion euro deficit on companies. Total, EU-U.S. commerce in items and companies in 2023 was price 1.6 trillion euros, according to the EU.
Equipment and autos make up the most important chunk of EU exports to the U.S. by product group, adopted by chemical compounds, different manufactured items and medicinal and pharmaceutical merchandise.
— CNBC’s Katrina Bishop and Amala Balakrishner contributed reporting to this story.
