Background

In June 2018, President Trump introduced tariffs on European steel and aluminium exports. In January 2020, additional tariffs, affecting EU exports of certain derivative steel and aluminium products, followed.

In response, in June 2018, the EU introduced countermeasures on US exports to the EU and made a similar response after the second set of tariffs in 2020.  Additional measures were planned to be introduced by the EU on 1 June 2021. Following discussions with the Biden Administration, the EU suspdend these measures until 31 March 2025 in order to give space for the parties to work out a longer-term solution.

On 10 February 2025, the US announced that it would impose 25% tariffs on imports of steel and aluminium and derivative products. The tariffs will apply worldwide and not just to the EU.  EU Commission President von der Leyen warned at the time that there would be a firm and proportionate response from the EU and on March 12 said that that “As the United States are applying tariffs worth US$28 billion, we are responding with countermeasures worth €26 billion,”. She announced a two-step approach

• First, the Commission will allow the suspension of existing 2018 and 2020 countermeasures against the US to lapse.  These countermeasures target a range of US products that respond to the economic harm done on €8 billion of EU steel and aluminium exports.
• Second, in response to new US tariffs affecting more than €18 billion of EU exports, the Commission is putting forward a package of new countermeasures on US exports. A list of products was published that may be subject to these countermeasures and the commission asked for views from stakeholders, member states etc on this list by March 26^th. They intend to consider the views and publish a final list in the coming weeks.   

High level EU officials have emphasised the detrimental impact of tariffs on businesses and consumers and the EU Trade Commissioner Maroš Šefčovič commented that “The US Administration has opted to pursue a harmful course of unjustified tariffs, leaving us with no choice but to respond,”.  “In the meantime, the EU remains ready to work with the US administration to find a negotiated solution. The above mentioned measures can be reversed at any time should such a solution be found”.

Next Steps/timetable

The timetable has changed on a couple of occasions since the announcement.

The decision by the Commission to restore the 2018 and 2020 countermeasures against the US (which includes Corn) was planned to take immediate effect on 1 April. We understand that the list of ‘old’ retaliatory tariffs from 2018 and 2020 will now be merged with the “new” list of US products proposed on 12 March (due to be finalised after the consultation). The list will be submitted in a single package to the Council (member states) for a formal vote on 7 April 2025 and there are indications that the countermeasures could apply from mid-April 2025.

However, all timetables and plans should be taken with a pinch of salt as the trade drama continues. President Trump reacted angrily in mid-March to the EU proposing countermeasures and has threatened 200% tariff on EU wine, including champagne. Yesterday he announced that he plans to impose an additional 25% tariff on imported cars and auto parts from April 2nd. The EU responded ‘regretting’ this decision and adding that  “As a major trading power and a strong community of 27 Member States, we will jointly protect our workers, businesses and consumers across our European Union.” Although an EU retaliation is expected, it is not clear yet what shape that will take. President Trump also threatened this morning  to impose tariffs “far larger than currently planned” if the EU worked with Canada against the US.