On 12 March 2025, the United States (“US”) imposed tariffs of up to 25% on imports of steel, aluminium, and products containing steel and aluminium from the European Union (“EU”) and other trading partners. In response, the European Commission is launching a series of countermeasures to protect European interests from the impact of these trade restrictions.
Background: Previous Trump-Era Measures and Countermeasures
(a) US Tariffs Under the Previous Trump Administration
In June 2018, the first Trump administration introduced “Section 232” tariffs on European steel and aluminium exports, targeting goods worth €6.4 billion. This was followed in January 2020 by additional tariffs affecting €40 million of EU exports of certain derivative steel and aluminium products.
(b) EU Countermeasures
The EU responded with “rebalancing measures”, structured into two categories:
- Annex I: Imposed immediately in June 2018, covering €2.8 billion worth of US goods; and
- Annex II: Scheduled for implementation in June 2021, targeting €3.6 billion worth of goods.
However, before Annex II took effect, the EU suspended all measures (both Annexes I and II) until 31 March 2025, following discussions with the US. This suspension was part of an attempt to find a long-term solution through a global arrangement addressing carbon intensity and overcapacity in the steel industry.
The latest US tariffs consist of three key elements:
Reinstating the June 2018 “Section 232” tariffs on steel and aluminium products, including steel pipes, wire, and tin foil;Increasing tariffs on aluminium from the original 10% to 25%; and
Extending tariffs to other products, such as household items (e.g., cooking ware, window frames, etc.) or partially steel/aluminium-based products (g., machinery, gym equipment, electrical appliances, furniture, etc.).
Additionally, the US Secretary of Commerce will establish a mechanism by 12 May 2025 to expand the list of steel and aluminium derivative products subject to tariffs of up to 25%.
On 12 March 2025, the EU Commission has announced [1] two-countermeasures in response to the new US tariffs
As from 1 April 2025, the EU will fully reinstate the 2018 and 2020 rebalancing measures. These will now apply in full for the first time, targeting US products such as boats, bourbon whiskey or motorbikes; and Since the new US tariffs have a broader scope and affect a higher value of trade, the European Commission has initiated a process to impose additional countermeasures:
The EU Commission’s consultation with the EU Member States under the Enforcement Regulation (Regulation (EU) No 654/2014) has begun, and it is expected to conclude with the entry into force of these additional countermeasures in Mid-April 2025.
Among the proposed targeted US goods are industrial products (g., steel, aluminium, textiles, leather goods, home appliances, house tools, plastics, wood products, etc.) and agricultural products (e.g., poultry, beef, seafood, nuts, eggs, dairy, sugar, vegetables, etc.).
As the EU stakeholder consultation proceeds, businesses in Europe and the US must prepare for potential disruptions. The coming weeks will be crucial in determining whether the US tariffs and the EU’s countermeasures mark the beginning of a new trade war or pave the way for a negotiated settlement.
[1] See EU Q&A: “EU countermeasures on US steel and aluminium tariffs explained”; and EU press release: “Commission responds to unjustified US steel and aluminium tariffs with countermeasures”