Trade War Heats Up: EU Hits US with Retaliatory Tariffs- wna24

The European Union has announced counter tariffs worth €26 billion ($28.33 billion) on U.S. goods, directly responding to President Donald Trump’s newly implemented levies on steel and aluminum imports.

Trump’s 25% tariffs on all steel and aluminum imports took effect on Wednesday, prompting the EU to retaliate with measures that “match the economic scope” of the U.S. tariffs, according to the European Commission.

The European Commission revealed that it will end its suspension of countermeasures on April 1, which had been in place since Trump’s first term. The countermeasures aim to mitigate economic losses faced by European businesses due to the U.S. tariffs.

“These countermeasures target a range of U.S. products that respond to the economic harm done on €8 billion of EU steel and aluminum exports,” the Commission stated.

Additionally, the EU is introducing new tariffs against more than €18 billion of U.S. exports, which are set to take effect by mid-April, following consultations with EU member states and business stakeholders.

European Commission President Ursula von der Leyen strongly criticized the U.S. tariffs, warning of their economic consequences.

“Tariffs are taxes. They are bad for business, and even worse for consumers,” she said in a statement.

She further warned that these tariffs would disrupt supply chains, increase economic uncertainty, and put jobs at risk in both Europe and the United States.

“Prices will go up. In Europe and in the United States,” she added.

Despite the countermeasures, von der Leyen emphasized that the EU remains open to dialogue with the U.S. to resolve trade disputes, stating:

“The countermeasures we take today are strong but proportionate. The European Union must act to protect consumers and businesses. We are ready to engage in meaningful dialogue.”

With both the U.S. and EU imposing tariffs on each other’s goods, trade tensions between the two economic giants are escalating. As April approaches, businesses on both sides of the Atlantic are likely to feel the impact of higher costs and disrupted supply chains, unless a trade agreement is reached.