EU vows tough countermeasures to US steel and aluminium tariffs

European Union chief Ursula von der Leyen has vowed that US tariffs on steel and aluminium “will not go unanswered”, adding that they will trigger tough countermeasures from the 27-nation bloc.

“The EU will act to safeguard its economic interests,” Ms von der Leyen said in a statement in reaction to US President Donald Trump’s imposition of tariffs on steel and aluminium the previous day.

“Tariffs are taxes — bad for business, worse for consumers,” Ms von der Leyen said on Tuesday.

“Unjustified tariffs on the EU will not go unanswered — they will trigger firm and proportionate countermeasures.”

The EU trade minister scheduled a first emergency video meeting on the bloc’s response on Tuesday.

“It is also important that everyone sticks together. Difficult times require such full solidarity,” said Prime Minister Donald Tusk of Poland, which holds the EU presidency.

Just as Mr Trump imposed similar tariffs during his first presidency, the EU countermeasures could easily amount to those that were used to retaliate then if the measures come into force March 12.

Bernd Lange, chairman of the European Parliament’s trade committee, warned that previous trade measures were only suspended and could legally be easily revived.

“When he starts again now, then we will, of course, immediately reinstate our countermeasures,” Mr Lange told rbb24 German radio.

“Motorcycles, jeans, peanut butter, bourbon, whiskey and a whole range of products that of course also affect American exporters” would be targeted, he added.

The EU Commission, which negotiates trade relations on behalf of the bloc, said it is not clear what countermeasures would apply, but officials and observers have said they would target Republican states and traditionally strong US exports.

In Germany, home to the EU’s largest economy, Chancellor Olaf Scholz told parliament that “if the US leaves us no other choice, then the European Union will react united,” adding that “ultimately, trade wars always cost both sides prosperity”.

Mr Trump is hitting foreign steel and aluminium with a 25% tax in the hope that they will give local producers relief from intense global competition, allowing them to charge higher prices.

He imposed similar tariffs during his first presidency but the move damaged relations with key US allies and drove up costs for “downstream’’ manufacturers that buy steel and aluminium.

After Mr Trump imposed steel tariffs in 2018, the EU imposed counter-tariffs on US-made motorcycles, bourbon, peanut butter and jeans, among other items.

EU Commission vice-president Maros Sefcovic said on Tuesday that the tariffs are “economically counterproductive, especially given the deeply integrated production chains established through our extensive transatlantic trade and investment ties”.

“We will protect our workers, businesses and consumers,” Mr Sefcovic said, but added that “it is not our preferred scenario.

“We remain committed to constructive dialogue. We stand ready for negotiations and to find mutually beneficial solutions where possible.”

The EU estimates that the trade volume between both sides stands at about 1.5 trillion dollars, representing some 30% of global trade.

“There is a lot at stake for both sides,” he told the EU legislature.

While the EU has a substantial export surplus in goods, it says that is partly offset by the US surplus in the trade of services.

The EU says that trade in goods reached 851 billion euros (878 billion dollars) in 2023, with a trade surplus of 156 billion euros (161 billion dollars) for the EU.

Trade in services was worth 688 billion euros (710 billion dollars) with a trade deficit of 104 billion euros (107 billion dollars) for the EU.