The European Union (EU) has announced a series of retaliatory trade actions following the Trump administration’s decision to increase tariffs on steel and aluminum imports to 25%. The new EU duties target U.S. industrial and agricultural products worth around 26 billion euros ($28 billion). This move, which came just hours after the U.S. tariffs were imposed, has intensified the already strained relationship between the two trading partners.
The U.S. tariffs, which affect a wide range of imports from Europe, including steel, aluminum, textiles, home appliances, and agricultural goods, are part of a broader trade dispute between the two sides. U.S. items like motorcycles, bourbon, peanut butter, and jeans, which were already subjected to tariffs during former President Donald Trump’s first term, will again face new duties.
The European Commission, which manages trade disputes for the EU’s 27 member countries, confirmed that the retaliatory tariffs are meant to target products from U.S. regions that heavily support the Republican Party, such as beef and poultry from Kansas and Nebraska, and wood products from Alabama and Georgia.
The EU’s goal with these tariffs is to apply pressure on the U.S. while avoiding significant damage to its own economy. European Commission President Ursula von der Leyen stated that the EU remains open to negotiations with the U.S., but she expressed concern about the negative impact tariffs could have on both economies. Von der Leyen stressed that tariffs could lead to job losses and higher prices in both the U.S. and Europe, hurting consumers and businesses alike.
“We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains and bringing uncertainty to the economy,” von der Leyen said.
In response to the increase in tariffs, U.S. President Donald Trump had argued that these measures were aimed at boosting American factory jobs by protecting domestic industries. However, von der Leyen noted that the tariffs would have the opposite effect, as they would harm jobs on both sides of the Atlantic and cause price hikes.
The situation has also sparked concerns from business groups. The American Chamber of Commerce to the EU issued a statement urging both sides to de-escalate the trade conflict and find a negotiated solution. The Chamber expressed that the tariffs and countermeasures will only damage jobs, prosperity, and security for both regions.
“The two sides must de-escalate and find a negotiated outcome urgently,” the Chamber said.
The EU’s retaliatory action involves a two-step process. Starting on April 1, the European Commission will reintroduce “rebalancing measures” that had been in place between 2018 and 2020 but were suspended under the Biden administration. On April 13, additional duties will be applied to U.S. exports worth approximately 18 billion euros ($19.6 billion).
These retaliatory measures are seen as a way for the EU to defend its economic interests while seeking a balanced and fair trade relationship with the U.S. In the past, the EU and U.S. have engaged in such tit-for-tat trade disputes, with the EU imposing tariffs on U.S. goods like motorcycles, bourbon, peanut butter, and jeans in response to similar actions during President Trump’s first term.
Maroš Šefčovič, the EU’s Trade Commissioner, had traveled to Washington in February 2025 to discuss the possibility of resolving the trade dispute before it escalated further. Šefčovič met with U.S. Commerce Secretary Howard Lutnick and other top trade officials in a bid to prevent the imposition of new tariffs.
Following his visit, Šefčovič told reporters that it became clear that the EU was not the cause of the problem. He emphasized that both parties need to work together to avoid unnecessary economic burdens.
“You need a partner for that. You need both hands to clap,” Šefčovič said, referring to the importance of cooperation between the U.S. and EU to solve trade conflicts.
The new tariffs are particularly concerning for Europe’s steel industry. According to the European Steel Association (Eurofer), the EU could lose up to 3.7 million tons of steel exports due to the tariffs. The U.S. is the second-largest export market for EU steel producers, accounting for 16% of total EU steel exports. The tariffs on steel and aluminum are likely to affect European steel manufacturers and result in potential job losses in the sector.
The EU’s annual trade volume with the U.S. is estimated at about $1.5 trillion, representing around 30% of global trade. Although the EU maintains a significant surplus in goods trade with the U.S., this is partly offset by the U.S. surplus in services. The ongoing trade dispute is likely to continue to disrupt trade flows and create uncertainty in the global market.
Despite being a former member of the European Union, the United Kingdom has not imposed its own retaliatory measures against the U.S. According to Jonathan Reynolds, the UK’s Business Secretary, the country will continue to engage productively with the U.S. to protect British business interests.
Reynolds noted that while the UK had not yet decided on any further measures, it would keep all options open in the future. He emphasized that the UK would act in its national interest, without ruling out the possibility of future tariffs on U.S. imports if necessary.
As tensions rise between the EU and U.S. over trade matters, the global business community is watching closely to see how the situation unfolds. Both sides have expressed a willingness to negotiate, but the growing divide on key issues such as tariffs and trade imbalances poses a significant challenge.
The U.S. and EU have long been two of the world’s largest and most important trading partners. However, the recent developments suggest that the relationship between them may continue to be marked by uncertainty and disagreement. If the trade conflict is not resolved soon, the economic consequences could be far-reaching, affecting industries and consumers on both sides of the Atlantic.
For now, the European Union’s retaliatory tariffs stand as a strong message to the U.S. that it will protect its economic interests. Both parties will have to decide whether they are willing to engage in further negotiations to avoid a prolonged trade war or continue down the path of escalating tariffs and countermeasures.
