Europe Urges Immediate Action in Response to Trump’s Tariffs

The European Union promptly reacted to U.S. President Donald Trump’s 25% tariffs on steel and aluminum imports that took effect Wednesday, imposing its own punitive measures aimed at safeguarding consumers and businesses.

The White House confirmed the tariffs—impacting Canada, Australia, the EU, and others—late Tuesday but indicated that Trump had abandoned plans to hike tariffs on metals imported from Canada to 50%.

In response, the EU announced it would implement counter-tariffs on U.S. goods valued at 26 billion euros ($28.33 billion), starting in April.

European Commission President Ursula von der Leyen stated on Wednesday that the EU “must act to safeguard businesses and consumers.”

“We deeply regret this move [by the U.S.]. Tariffs are essentially taxes; they are detrimental to business and even worse for consumers. They disrupt supply chains, create economic uncertainty, put jobs at risk, increase prices, and this situation benefits no one,” she remarked during a press conference.

Von der Leyen emphasized that the trade relationship between the U.S. and EU “is the largest in the world,” contributing to “prosperity and security for millions” and fostering job growth on both sides of the Atlantic.

The EU’s strategy involves re-imposing previously suspended tariffs on 8 billion euros of U.S. exports, alongside introducing additional countermeasures on 18 billion euros of goods—a step Von der Leyen characterized as “strong but proportionate.”

“We will always remain open to negotiation,” she concluded in her statement.

Unlike Mexico, Canada, and China, products from the EU had not faced Trump’s tariffs until the effective date of the steel and aluminum duties this Wednesday.

Tensions between Washington and Brussels have been escalating since Trump’s inauguration in January, when he indicated his intention to place tariffs on the EU.

“They’ve really taken advantage of us,” Trump remarked during a Cabinet meeting on February 26, adding, “They don’t accept our cars or even our agricultural products. They find various excuses not to. Yet we accept everything from them.”

One of Trump’s primary grievances involves the U.S. trade deficits with several important trading partners, including Canada and the EU.

Data from the European Commission indicates that in 2023, the EU held a trade surplus of 155.8 billion euros ($159.6 billion) with the U.S. in goods but experienced a 104-billion-euro deficit in services. Overall, EU-U.S. trade in goods and services was valued at 1.6 trillion euros ($1.68 trillion) in 2023, according to the EU.

Machinery and vehicles constitute the largest portion of EU exports to the U.S., followed by chemicals, other manufactured goods, and medicinal and pharmaceutical products.

— Reporting contributed by CNBC’s Katrina Bishop and Amala Balakrishner.