The European Union has announced the implementation of counter-tariffs on $28.33 billion worth of American goods, commencing in April. This decisive move comes as a direct response to the United States' recent imposition of tariffs on steel and aluminum imports, which took effect on Wednesday. The EU's two-pronged strategy will see previously suspended tariffs re-applied to $8 billion in US exports and the introduction of new countermeasures affecting $18 billion worth of goods.
The counter-tariffs by the EU will impact a range of products, including industrial-grade steel, aluminum, their semi-finished and finished products, as well as derivative commercial items. Machinery parts and knitting needles are among the specific goods targeted by these measures. This action follows the US decision to enforce tariffs on European imports, which the EU views as necessitating a proportionate response.
The European Union's trade surplus with the United States for goods in 2023 stood at 155.8 billion euros ($159.6 billion). However, the EU also faced a 104-billion-euro deficit in services with the US during the same period. Overall, the comprehensive trade relationship between the two economic giants was valued at 1.6 trillion euros ($1.68 trillion) in 2023.
The swift response from the EU underscores its commitment to protecting its businesses and consumers. European Commission President Ursula von der Leyen emphasized the need to act decisively in the face of US tariffs. The EU's counter-tariffs are designed to safeguard its economic interests while maintaining a robust trade partnership with the United States.
"We will always remain open to negotiation."
The EU remains open to dialogue and negotiation, signaling its willingness to engage in constructive discussions to resolve trade disputes amicably. Nonetheless, the counter-tariffs will likely have a significant impact on US exports to Europe, with certain products facing tariffs as high as 25%.
Trade ties between the EU and the US are among the most substantial globally, providing prosperity, security, and job creation for millions on both sides of the Atlantic. The EU's measured response aims to balance these benefits with protecting its economic interests in the face of what it considers unjustified tariffs imposed by the Trump administration.
Australian Prime Minister Anthony Albanese has expressed support for the EU's actions, labeling the US tariffs as "entirely unjustified." His remarks echo wider international concerns about protectionist measures and their potential impact on global trade dynamics.