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EU fights back with countermeasures to US steel and aluminum tariffs

EU fights back with countermeasures to US steel and aluminum tariffs

EU fights back with countermeasures to US steel and aluminum tariffs

The European Commission has announced countermeasures in response to the U.S. decision to maintain 25% tariffs on steel and aluminum imports. According to a Commission press release (March 14, 2025), the EU argues that the US has not provided sufficient justification for maintaining these tariffs, which Washington continues to frame as national security measures under Section 232, prompting the EU to take action.

 

Commission President Ursula von der Leyen stated:

 

"As the U.S. applies tariffs worth $28 billion, we are responding with countermeasures worth €26 billion."

 

Two-phase tariff plan begins in April

 

The European Commission has outlined a two-phase plan. Effective April 1, 2025, the EU will reimpose tariffs on U.S. products originally targeted in 2018 and 2020 but later suspended, including boats, bourbon, and motorbikes. By mid-April, following a two-week consultation period, the EU plans to introduce additional tariffs on a wider range of U.S. goods, covering industrial and agricultural products—particularly steel and aluminum—as well as textiles, home appliances, and plastics.

 

A Q&A document released by the Commission on March 14 clarifies that these measures aim to protect the EU’s steel and aluminum industries while preserving efforts to negotiate a sustainable trade arrangement with the U.S.

 

Industry response and additional trade measures

 

Industry representatives have backed the EU’s response. In a March 12 statement, EUROFER warned that the new 25% blanket tariff could be "the final nail in the coffin" for European steel. The association highlighted risks of further export losses and the potential redirection of 18 million tonnes of steel into the EU market, urging urgent revisions to safeguard measures.

 

In related trade developments, the European Commission has proposed provisional anti-dumping duties on hot-rolled coil imports from Egypt, Japan, and Vietnam. According to MEPS International, these duties could take effect in the coming weeks to address unfair trade practices.

 

Additionally, the EU is working to extend trade support for Ukraine’s steel industry. On March 7, the Commission proposed maintaining the suspension of tariffs and quotas on Ukrainian steel, ensuring continued access to the EU market.

 

These measures reflect the EU’s broader strategy to ensure fair competition and support its steel industry. However, with growing global trade pressures, the sector faces an uphill battle to remain competitive.

 

Pictures by CC-BY-4.0: © European Union – Source: EP

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Tuesday, March 18, 2025