The European Union on Wednesday announced retaliatory trade action with a series of duties on US industrial and agricultural products that will go into effect from April 1.
It comes weeks after the Trump administration announced an increase in tariffs on all steel and aluminium imports from the European bloc to 25%.
The world’s biggest trading bloc was expecting the US tariffs and prepared in advance, but the measures still place great strain on already tense transatlantic relations.
Only last month, Washington warned Europe that it would have to take care of its own security in the future.
The EU measures will cover goods from the United States worth some 26 billion euros ($28 billion), and not just steel and aluminium products, but also textiles, home appliances and agricultural goods.
Motorcycles, bourbon, peanut butter and jeans will be hit, as they were during President Donald Trump‘s first term.
Britain – which is not part of the EU – meanwhile said it would not impose retaliatory measures of its own on the United States.
The UK government called Washington’s decision to impose 25% tariffs on global steel and aluminium imports ‘disappointing.’
President Donald Trump speaks at the Business Roundtable quarterly meeting in Washington, Tuesday, March 11, 2025
European Commission President Ursula von der Leyen (L) and EU Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency Maros Sefcovic
European Commission President Ursula von der Leyen said in a statement announcing the measures Wednesday that the bloc ‘will always remain open to negotiation.’
‘As the US are applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros,’ she said. The commission manages trade and commercial conflicts on behalf of the 27 member EU countries.
‘We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs,’ von der Leyen said.
The commission also said that steel and aluminium products would be hit in return, as well as textiles, leather goods, home appliances, household tools, plastics, and wood. Agricultural products will also be impacted – including poultry, beef, some seafood, nuts, eggs, sugar and vegetables.
Trump said his taxes would help create US factory jobs, but von der Leyen said: ‘Jobs are at stake. Prices will go up. In Europe and in the United States.’
‘We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy,’ she said.
Trump slapped similar tariffs on EU steel and aluminium during his first term in office, which enraged European and other allies. The EU also imposed countermeasures in retaliation at the time, raising tariffs on US-made motorcycles, bourbon, peanut butter and jeans, among other items.
This time, the EU action will involve two steps. First, the commission will reintroduce what it calls ‘rebalancing measures,’ which the EU had from 2018 and 2020 but which were suspended under the Biden administration, then additional duties targeting 18 billion euros ($19.6 billion) in US exports to the bloc.
EU Trade Commissioner Maros Sefcovic travelled to Washington last month in an effort to head off the tariffs, meeting with US Commerce Secretary Howard Lutnick and other top trade officials.
He said on Wednesday that it became clear during that trip ‘that the EU is not the problem.’
‘I argued to avoid the unnecessary burden of measures and countermeasures, but you need a partner for that. You need both hands to clap,’ Sefcovic told reporters at the European Parliament in Strasbourg, France.
A person shops through steel pieces at a metal supply business in Burbank, California, USA, 11 March 2025
United States President Donald Trump speaks in front of a Tesla Model S with Elon Musk, Tesla CEO and Senior Advisor to the President of the United States
The EU could lose up to 3.7 million tons of steel exports, according to Henrik Adam, president of the Eurofer European steel association.
‘It will further worsen the situation of the European steel industry, exacerbating an already dire market environment,’ Adam said last month.
The US is the second biggest export market for EU steel producers, representing 16% of the total EU steel exports.
‘Losing a significant part of these exports cannot be compensated by EU exports to other markets,’ Adam said.
The EU estimates that annual trade volume between both sides stands at about $1.5 trillion, representing some 30% of global trade. While the bloc has a substantial export surplus in goods, it says that is partly offset by the US surplus in the trade of services.
The commission says that trade in goods reached 851 billion euros ($878 billion) in 2023, with a trade surplus of 156 billion euros ($161 billion) for the EU.
Trade in services was worth 688 billion euros ($710 billion) with a trade deficit of 104 billion euros ($107 billion) for the EU.
Meanwhile, British Business Secretary Jonathan Reynolds said Wednesday he would ‘continue to engage closely and productively with the US to press the case for UK business interests.’
He did not rule out future tariffs on US imports, saying ‘we will keep all options on the table and won’t hesitate to respond in the national interest.’
Center-left Prime Minister Keir Starmer has worked to build strong ties with Trump, in hope of avoiding the tariffs levied on many other US trading partners.
Reynolds said the government remains ‘focused on a pragmatic approach and is rapidly negotiating a wider economic agreement with the US to eliminate additional tariffs and to benefit UK businesses and our economy.’