European Union responds to US tariffs with retaliation
Last month, the US administration led by President Donald Trump imposed 25 percent tariffs on steel and aluminium imports from Europe. In response, the European Commission is imposing retaliatory tariffs on a wide range of US goods.
On 12 March, the 25 percent tariffs on aluminium and steel imports decided by US President Donald Trump entered into force. The European Union decided to respond by imposing retaliatory tariffs on US industrial and agricultural products. These measures target approximately USD 28 billion (CZK 650 billion) worth of US goods and were to enter into force on 1 April, but the date has now been pushed back to 13 April.
The European Union is trying to target its measures at goods originating in the Republican states of the US. In addition to metals, US textiles, household appliances, and various agricultural products such as poultry, beef and vegetables will also be affected, as will motorcycles, bourbon, and even the popular peanut butter.
European Commission President Ursula von der Leyen emphasised that the EU remains open to negotiations and expressed regret over the imposition of tariffs. She said the tariffs will negatively affect jobs and raise consumer prices on both sides of the Atlantic. The EU is trying to respond in a way that protects consumers and businesses but at the same time does not escalate the situation – the retaliatory tariffs are equivalent in value to those imposed by the United States.
The EU's move is part of a broader strategy to protect its economic interests at a time of strained transatlantic relations. The European steel industry is bracing itself for significant losses as the US is the second largest export market for European steel producers. Compensation in the form of exports to other markets will be hard to find. In any case, the EU is looking into various alternatives: for example, Brazil or Argentina are being considered for imports of certain agricultural products.
Unlike the EU, the UK, being no longer part of the Union, has chosen not to introduce its own retaliatory measures. The UK government described Washington's decision as disappointing but rather than responding by imposing tariffs, they chose a pragmatic approach: UK government officials are seeking to negotiate a comprehensive agreement with the US that would remove tariffs and promote the interests of UK businesses.
European Commissioner for Trade Maroš Šefčovič is communicating with the US administration to avert the tariffs, however an agreement that would benefit the economies on both sides is not in sight.
In response to the announcement of retaliatory tariffs, the US is threatening the EU with a 200 percent import tariff on wine and spirits, which is why the original effective date of the EU retaliatory tariffs has been pushed back to 13 April to allow for more time to discuss the situation with the US. However, the United States have indicated that they refuse any discussion, as they have also announced a 25 percent tariff on imports of all cars manufactured outside the US at the end of March.