Yesterday (12 March 2025), the EU announced countermeasures in response to the imposition of new US tariffs on steel and aluminium imports from the EU in order to protect the economic interests of EU operators. It is not yet clear whether there will be a political solution with the Trump Administration similar to the tariff dispute in the first Trump term. However, the EU is emphasising its willingness to negotiate.
I. Background U.S. tariffs
The U.S. had already introduced tariffs on steel and aluminium imports from the EU worth around EUR 6.4 billion during Trump's first term in office in 2018. The EU responded with countermeasures, which, following joint negotiations, were suspended until 31 March 2025.
On 12 March 2025, the USA reintroduced tariffs on EU imports and extended them even further. On the one hand, the tariffs of 25% introduced in 2018 will be applied again and, on the other hand, extended to other product categories, such as household goods made of steel and aluminium or other products containing such components. In total, the U.S. tariffs cover goods imports worth up to EUR 28 billion and will have a significant impact on the economy and, as a result, on consumers.
II. EU countermeasures
According to Commission President von der Leyen, the current developments in U.S. tariffs urgently require an appropriate response from the EU. The EU's countermeasures are based on a two-stage approach. In a first step, the (temporarily suspended) countermeasures from 2018 and 2020, which target certain U.S. products such as whiskey, motorbikes and jeans, will be reinstated on 1 April 2025. In addition, and in response to the extension of the U.S. measures, the EU is proposing countervailing measures covering other U.S. products such as industrial goods and agricultural products with a value of up to EUR 18 billion (full list available at: Circabc). The Commission has now initiated a two-week consultation phase with EU stakeholders in order to develop targeted measures. The second package of measures could then come into force in mid-April.
III. Outlook / Options for further action
Both the U.S. tariffs and the EU countermeasures will have a significant impact on economic operators in both regions. In addition to increased costs and the corresponding difficulties in accessing the U.S. and EU markets, companies that rely on components from foreign manufacturers for the production of their products are also likely to face challenges. Companies can react to the tariffs by, among other things, adapting their production chains, whereby it must be checked in each case whether there is no circumvention (see ECJ, judgement of 21 November 2024, C-297/23 P - Harley Davidson).
We will keep an eye on further developments and provide you with the latest news here. If your company is affected by the current measures or if you have any further questions, please do not hesitate to contact us!
