The European Union announced on Wednesday that it would implement retaliatory tariffs on a range of U.S. industrial and agricultural goods, just hours after the Trump administration expanded duties on all steel and aluminum imports to 25%.
The EU had anticipated the U.S. decision and had prepared accordingly, but the move still exacerbates already strained relations between the two economic powerhouses. Just last month, the U.S. warned European nations that they would need to take responsibility for their own security moving forward.
The new EU tariffs will affect approximately 26 billion euros ($28 billion) worth of American exports, targeting not only steel and aluminum but also sectors such as textiles, home appliances, and agricultural products. Popular American goods like motorcycles, bourbon, peanut butter, and denim jeans will also be subject to increased duties, similar to measures imposed during President Donald Trump’s first term in office.
These trade penalties are strategically designed to inflict economic pressure on the United States while minimizing collateral damage to European industries. The tariffs—taxes imposed on imported goods—disproportionately impact Republican-led states, with levies hitting soybean exports from House Speaker Mike Johnson’s home state of Louisiana, as well as beef and poultry products from Kansas and Nebraska. Additional agricultural products from Alabama, Georgia, and Virginia are also included in the EU’s list.
European Commission President Ursula von der Leyen reaffirmed that the bloc remains open to discussions.
“As the U.S. are applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros,” she stated. The European Commission is responsible for managing trade relations and disputes on behalf of the EU’s 27 member states.
“We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs,” von der Leyen added.
Trump has argued that his tariff policies will bring back manufacturing jobs to the United States, but von der Leyen pushed back against that assertion, warning: “Jobs are at stake. Prices will go up. In Europe and in the United States.”
“We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy,” she emphasized.
The American Chamber of Commerce to the EU also voiced its disapproval, warning that the tariff escalation would have negative consequences for both economies.
“The two sides must de-escalate and find a negotiated outcome urgently,” the chamber urged on Wednesday.
During his first term, Trump imposed similar trade barriers on European steel and aluminum, a move that angered European allies and prompted immediate retaliatory tariffs. At that time, the EU imposed increased duties on a range of American products, including motorcycles, bourbon, peanut butter, and jeans.
This time, the EU’s response will be implemented in two phases. First, on April 1, the European Commission will reinstate a set of tariffs previously applied between 2018 and 2020, which had been suspended under President Joe Biden. Then, on April 13, additional levies will take effect on 18 billion euros ($19.6 billion) worth of U.S. exports entering the European market.
EU Trade Commissioner Maroš Šefčovič had traveled to Washington last month to attempt to prevent the imposition of tariffs, meeting with U.S. Commerce Secretary Howard Lutnick and other key trade officials.
Reflecting on his visit, Šefčovič stated on Wednesday that it had become evident that Europe was not to blame for the situation.
“I argued to avoid the unnecessary burden of measures and countermeasures, but you need a partner for that. You need both hands to clap,” he told reporters at the European Parliament in Strasbourg, France.
The European steel industry is expected to bear significant losses, with the sector potentially losing up to 3.7 million tons in steel exports, according to the European Steel Association (Eurofer). The United States is the second-largest export destination for European steel producers, accounting for 16% of total EU steel exports.
Trade between the EU and the U.S. is estimated to be worth approximately $1.5 trillion per year, representing nearly 30% of all global trade. While the EU enjoys a trade surplus in goods, it argues that this is partially balanced by the United States’ advantage in services trade.
Meanwhile, the United Kingdom, which is no longer part of the EU, announced that it would not impose retaliatory tariffs of its own. British Business Secretary Jonathan Reynolds stated on Wednesday that the U.K. intends to “continue to engage closely and productively with the U.S. to press the case for U.K. business interests.”
While he did not entirely rule out the possibility of future trade restrictions, Reynolds made it clear that Britain would evaluate its options. “We will keep all options on the table and won’t hesitate to respond in the national interest,” he said.
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