The European Commission has initiated a series of countermeasures aimed at safeguarding European businesses, workers, and consumers from the repercussions of new trade restrictions imposed by the United States. These restrictions include tariffs of up to 25% on imports of steel, aluminum, and certain steel- and aluminum-containing products.
In response to the US tariffs, the Commission’s measures are swift and measured, focusing on two main actions:
1) The reactivation of balancing measures that were previously suspended in 2018 and 2020. Effective April 1, 2025, the 2018 rebalancing measures—which target US products worth €2.8 billion—along with the 2020 measures, will automatically come into force following the expiration of their suspension. This will mark the first full application of these rebalancing measures, imposing tariffs on a diverse range of products from boats to bourbon and motorcycles.
2) The introduction of a new set of additional countermeasures. On March 12, the Commission began the process to impose further measures on US goods, targeting products valued at approximately €18 billion, which will be implemented alongside the reactivated measures from 2018.
The objective of these actions is to ensure that the total value of the EU’s countermeasures aligns with the heightened trade value impacted by the new US tariffs.
In greater detail, the European Commission’s announcement outlines the US policies and corresponding EU responses, along with details of forthcoming actions.
– Background: Previous Measures and Countermeasures Under the Trump Administration –
In June 2018, the Trump administration first imposed tariffs on European steel and aluminum exports, targeting EU products valued at €6.4 billion (or €8 billion based on projected 2024 values). Additional tariffs were introduced in January 2020, affecting around €40 million in EU exports of specific steel and aluminum derivative items. The EU’s response included a tailored set of “rebalancing measures.”
The 2018 EU countermeasures were structured in two sets (annexes I and II), each impacting different product categories. Annex I focused on US products valued at €2.8 billion, while Annex II aimed at another €3.6 billion. A similar response emerged following the 2020 US tariff actions.
While Annex I was implemented immediately in June 2018, Annex II was slated for enactment in June 2021 but was suspended until March 31, 2025. The EU’s countermeasures from 2020 will also reactivate on April 1, following discussions with the US, which had previously agreed to suspend tariffs for EU exporters under specific quotas. This arrangement provided both parties the opportunity to negotiate a long-term solution addressing carbon intensity and global overcapacity.
– The New US Measures –
The US tariffs that came into effect on March 12 encompass three principal components:
1) The reinstatement of the June 2018 section 232 tariffs on various steel and aluminum products, including semi-finished and finished goods like steel pipes, wire, and tinplate.
2) An increase in aluminum tariffs from the original 10% to 25%.
3) An extension of tariffs to additional products, notably including household items such as cookware and frames, as well as machinery, gym equipment, some electrical appliances, and furniture. By May 12, 2025, the US Secretary of Commerce will also establish a system to expand the list of derivative steel and aluminum products subject to additional tariffs of up to 25%.
This new round of US tariffs is expected to impact EU exports worth €26 billion, representing about 5% of the EU’s total goods exports to the US, leading to an estimated additional import duty of up to €6 billion for US importers.
– The EU’s Response –
The Commission has acted quickly and proportionately to protect European interests through two countermeasures:
1) The reinstatement of previously suspended balancing measures.
2) The introduction of a new package of additional measures.
– Reactivation of Suspended Countermeasures –
The 2018 and 2020 rebalancing measures will automatically come back into effect on April 1, 2025, making their first full application
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