EU Responds to U.S. Tariffs with €26 Billion Countermeasures

Brussels, March 12, 2025 – In a significant escalation of transatlantic trade tensions, the European Union has announced a robust response to the United States’ imposition of a 25% tariff on EU steel and aluminum imports, effective as of this morning. European Commission President Ursula von der Leyen, alongside Trade Commissioner Maroš Šefčovič, delivered a press statement today outlining the EU’s countermeasures, valued at €26 billion, aimed at matching the economic impact of the U.S. tariffs, estimated at $28 billion.

President von der Leyen expressed deep regret over the U.S. decision, emphasizing the mutual benefits of the EU-U.S. trade relationship, the largest of its kind globally. “Tariffs are taxes. They are bad for business, and worse for consumers,” she stated, highlighting the potential for disrupted supply chains, economic uncertainty, and rising prices on both sides of the Atlantic. “Nobody needs that – neither in the European Union nor in the United States.”

US Tariffs

The EU’s countermeasures will roll out in two phases, beginning April 1 and reaching full implementation by April 13. Von der Leyen stressed that these actions, while firm, are “proportionate” and designed to protect European consumers and businesses. Despite the retaliatory measures, she underscored the EU’s openness to dialogue, tasking Commissioner Šefčovič with resuming negotiations to seek a resolution with the U.S.

Commissioner Šefčovič echoed von der Leyen’s sentiments, calling the U.S. tariffs “unjustified” and a step in the “wrong direction.” He pointed to shared challenges, such as global steel and aluminum overcapacities driven by non-market practices, noting that the EU is a partner in addressing these issues, not a contributor to them. “Last month, during my visit to Washington, it was clear that the European Union isn’t the problem,” he said, lamenting the U.S. choice to pursue tariffs despite EU efforts to avoid escalation.

EU Response

The EU’s response includes two key actions. First, as of April 1, the bloc will reinstate previously suspended rebalancing measures from 2018 and 2020, targeting €4.5 billion worth of U.S. goods exported to the EU. Second, the European Commission is preparing an additional package of countermeasures affecting €18 billion of U.S. exports, with a two-week consultation period involving stakeholders to refine the approach. Šefčovič emphasized the goal of minimizing disruption to European businesses and consumers while countering the U.S. tariffs’ impact.

Both leaders reiterated their preference for a negotiated solution over a trade war. “You need both hands to clap,” Šefčovič remarked, signaling the EU’s readiness to work with the U.S. to avoid further economic strain. The coming weeks will be critical as the EU balances its defensive stance with diplomatic efforts to de-escalate the situation, amid a global economic landscape already fraught with uncertainty.

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