EU to respond to US steel tariffs with 'countermeasures' from April 1

BRUSSELS: The European Commission said Wednesday it would impose “countermeasures” from April 1 in response to US tariffs of 25 percent on steel and aluminum imports.

“We deeply regret this measure,” European Commission chief Ursula von der Leyen said in a statement about the US tariffs, as Brussels announced it would be “launching a series of countermeasures” in response to the “unjustified trade restrictions”.

“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 said.

Von der Leyen estimated the US tariffs were worth $28 billion and the European Union’s response would affect the same amount of US products.

US President Donald Trump’s 25 percent duties on steel and aluminum imports took effect at 00:01 (04:01 GMT) local time Wednesday and mark a new stage in the trade war between the United States and its main trading partners.

Washington has framed the move as a bid to protect US steel and American workers as the sector declines and faces fierce overseas competition, especially from Asia.

The latest duties will impact Australia, Canada, the EU, Japan and China as well as Brazil and Mexico despite last-ditch attempts by some to get exemptions.

It’s not the first time Trump has slapped tariffs on the metals.

During his first presidency, he imposed duties on steel and aluminum exports in 2018 — forcing the EU to respond with its own higher duties that are frozen until the end of March.

As part of the EU’s two-pronged approach to Trump’s actions, von der Leyen said Brussels will also allow the previous suspension to relapse once it expires.

“For the first time, these rebalancing measures will be implemented in full. Tariffs will be applied on products ranging from boats to bourbon to motorbikes,” the commission said.

Von der Leyen said, however, the EU was “ready to engage in meaningful dialogue. I have entrusted Trade Commissioner Maros Sefcovic to resume his talks to explore better solutions with the US”.

Sefcovic had earlier this week said the United States was not “engaging” with the EU, but European officials believe that the threat to retaliate will be a show of strength that will bring the US administration back to the table.

The commission launched a procedure to impose the countermeasures on Wednesday.

The first step will be a “two-week stakeholder consultation” to make sure that the “right products” are targeted and a response “that keeps disruption to EU businesses and consumers to a minimum”.

The EU’s countermeasures would be fully in place by mid-April unless Trump reverses course.