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The Commission launches a series of countermeasures to protect European businesses, workers, and consumers from the impact of trade restrictions imposed today by the US with tariffs of up to 25% on imports of steel, aluminum, and certain products containing steel and aluminum.
The Commission has launched a swift and proportionate response designed to defend European interests through two countermeasures in response to the 25% tariffs imposed by the US.
1) The re-imposition of balancing measures suspended in 2018 and 2020. That is, on April 1, 2025, the 2018 rebalancing measures (targeting US products worth €2.8 billion) and the 2020 measures (scheduled to take effect in June 2021, but then the EU suspended all measures from both 2018 to March 31, 2025). These will automatically return to effect after their suspension expires on March 31. For the first time, these rebalancing measures will be fully applied. Tariffs will be applied to products ranging from boats to bourbon and motorcycles.
2) The imposition of a new package of additional measures. The Commission started the process on March 12 to impose additional countermeasures on the US, targeting goods worth approximately €18 billion, which will then be applied together with the re-imposed measures from 2018 (€2.8 billion of US products).
The aim is to ensure that the total value of the EU’s measures corresponds to the increased value of trade affected by the new US tariffs.
In more detail, the announcement from the European Commission explains US policy and the measures taken by the EU, as well as the subsequent moves.
– Framework: measures and countermeasures imposed under the previous Trump administration –
In June 2018, the first Trump administration imposed tariffs on European steel and aluminum exports, targeting EU products worth €6.4 billion (€8 billion based on 2024 flows and values). In January 2020, additional tariffs followed, affecting around €40 million of EU exports of certain steel and aluminum derivative products. The EU responded with a targeted set of so-called “rebalancing measures”.
In 2018, the EU’s countermeasures were structured in two sets of measures (annexes I and II), affecting different categories of products. Annex I targeted US products worth €2.8 billion, while Annex II was planned to target products worth €3.6 billion. A similar EU reaction followed the second US tariff package in 2020.
Regarding the 2018 rebalancing measures, while Annex I was immediately implemented in June 2018, Annex II was planned to be enacted in June 2021. Before the scheduled implementation of Annex II, the EU suspended all measures (i.e., both annexes) until March 31, 2025. The EU’s 2020 rebalancing measures will also return on April 1. This came after discussions with the US, who agreed to suspend 232 tariffs for EU exporters within a specific quota. This allowed both sides space to work towards a more long-term solution through a global arrangement addressing carbon intensity and global overcapacity.
– The new US measures –
The US measures that took effect on March 12 consist of three main components:
1) Reinstatement of the June 2018 section 232 tariffs on steel and aluminum products. These covered various types of semi-finished and finished products, such as steel pipes, wire, and tinplate.
2) Increase in the tariffs imposed on aluminum from the initial 10% to 25%.
3) Extension of tariffs to other products, notably: steel and aluminum products, such as household items like cookware or frames. Products consisting only in part of steel or aluminum, such as machinery, gym equipment, certain electrical appliances, or furniture. Additionally, the US Secretary of Commerce will establish by May 12, 2025, a system whereby the US will continue to expand the list of derivative steel and aluminum products subject to additional tariffs of up to 25%.
The US tariffs will collectively affect EU exports worth €26 billion, corresponding to about 5% of the EU’s total goods exports to the US. Based on current import flows, this will result in US importers having to pay up to €6 billion in additional import duties.
– The EU response –
The Commission has launched a swift and proportionate response designed to defend European interests through two countermeasures:
1) The re-imposition of balancing measures suspended in 2018 and 2020
2) the imposition of a new package of additional measures.
– Reinstatement of suspended countermeasures –
On April 1, 2025, the 2018 and 2020 rebalancing measures will automatically return to effect after their suspension expires on March 31. For the first time, these rebalancing measures will be fully applied. Tariffs will be applied to products ranging from boats to bourbon and motorcycles.
– A new package of additional measures –
Given that the new US tariffs are significantly broader in scope and affect a significantly larger value of European trade, the Commission started the process on March 12 to impose additional countermeasures on the US. These will target goods worth approximately €18 billion, which will then be applied together with the re-imposed measures from 2018. The aim is to ensure that the total value of the EU’s measures corresponds to the increased value of trade affected by the new US tariffs.
The first step in this process is the start of two-week consultations with EU stakeholders. These consultations will ensure the appropriate products are selected for inclusion in the new countermeasures, ensuring an effective and proportionate response that minimizes disruption for EU businesses and consumers.
1) March 12 – Consultations begin with interested parties:
The list of targeted products proposed by the Commission is published on the DG Trade website. Proposed target products include a mix of industrial and agricultural products: Industrial products include, among others, steel and aluminum products, textiles, leather goods, household appliances, home tools, plastics, and wood products. Agricultural products include, among others, poultry, beef, certain seafood, nuts, eggs, dairy, sugar, and vegetables.
2) March 26 and the following days: Consultation with interested parties is concluded. The Commission consolidates and assesses input from interested parties. The Commission finalizes the draft implementing act and consults with member states on it. The legal basis for this act will be the enforcement regulation (Regulation (EU) No 654/2014), as we consider the US measures to be safeguards. This process will follow the adjustment procedure of European legislation, according to which EU member states will be asked to approve the proposed measures before their approval.
3) Mid-April – the approval process is completed and the act imposing the countermeasures enters into force. (13/3/2025)