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Billions in EU sanctions against US are ready

by AI | 12.Feb 2025 | Europe in brief AI

The European Union has billions in measures against American products ready as a possible response to President Donald Trump’s decision to impose a 25 percent tariff on steel and aluminum starting next month.

U.S. President Donald Trump has announced import tariffs on aluminum and steel. (Photo by Eva Marie UZCATEGUI / AFP)

BRUSSELS (AP) – The EU trade ministers will meet digitally on Wednesday to discuss a response to the American decision. The European Commission regrets the step taken by Trump, but has been preparing for it for a long time. The Commission promises that the countermeasures will be strong and proportionate.

When Trump introduced import tariffs on steel and aluminum during his first term in 2018, the EU responded with an initial package of 2.8 billion in tariffs. These affected, among other things, bourbon, Harley Davidson motorcycles, and some steel and aluminum. According to the Financial Times, this amount had since increased to 4.8 billion. Under Trump’s successor, President Joe Biden, the sanctions were suspended.

At the end of March, the agreement between the European Commission and Biden expires, and they will automatically come into force again on April 1. The European Commission can decide to lift the freeze earlier and bring forward the implementation of countermeasures.

According to an EU diplomat, the Commission will likely take other measures as well, but similar to those from 2018. They will at least involve targeted measures that directly financially hurt the US, or specific states.

Another EU diplomat expects that the EU’s first step will be targeted and limited. But if Trump comes up with more trade measures in the coming weeks or months, the EU will also come up with more countermeasures.

During Trump’s first presidency, the EU waited three months to respond to the import tariff. Now that response will come faster. According to EU diplomats, concrete countermeasures are ready, but still under lock and key.

Diplomats hope that Trump’s announcement aims at something else, like when he wanted Mexico to guard its borders with the US more strictly to curb illegal immigration. That should become clear during negotiations.

(February 11, 2025)