The European Union has retaliated against U.S. President Donald Trump’s steel and aluminum tariffs, unveiling a two-stage tit-for-tat measure that would cover billions of dollars’ worth of products.
The U.S. decision to raise tariffs on steel and aluminum to 25 percent for global imports took effect Wednesday, the latest salvo in Trump’s ongoing campaign to reshape the U.S. trading relationship with the rest of the world.
European leaders have warned for months they would swiftly hit back against potential tariffs, even as they emphasized that a trade war would hurt both sides and tried to negotiate an off-ramp with the Trump administration.
The European Union said Wednesday that its response will come in two stages. During Trump’s first term, the bloc had raised tariffs on a variety of products in response to U.S. measures, which were later suspended after negotiations during the Biden administration. The pause on tariffs will now be allowed to expire on April 1, re-imposing the higher E.U. levies on products, including jeans and boats.
The tariffs come at a difficult time for economies in the European Union, which counts the United States as its largest export market. With key countries facing sluggish growth, businesses are bracing for the prospect of a protracted trade war. Germany, the leading exporter to the United States, would be particularly vulnerable.
The bloc had been bracing for U.S. tariffs ever since Trump took the helm of the White House in January. At E.U. headquarters, a group informally dubbed the “Trump task force” has since last year been strategizing for his return and focused on preparing for trade scenarios.
The European leaders have made clear they would much prefer to negotiate and persuade Trump to forgo steep tariffs.
On Wednesday, officials suggested they hoped negotiations would continue and that the new E.U. measures could spur some agreement.
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