EU vows tough countermeasures to US tariffs

[February 11, 2025]  By RAF CASERT

BRUSSELS (AP) — European Union chief Ursula von der Leyen vowed on Tuesday that U.S. tariffs on steel and aluminum “will not go unanswered,” adding that they will trigger tough countermeasures from the 27-nation bloc.

“The EU will act to safeguard its economic interests,” von der Leyen said in a statement in reaction to U.S. President Donald Trump's imposition of tariffs on steel and aluminum the previous day.

“Tariffs are taxes — bad for business, worse for consumers,” von der Leyen said. “Unjustified tariffs on the EU will not go unanswered — they will trigger firm and proportionate countermeasures.”

In Germany, home to the EU's largest economy, Chancellor Olaf Scholz told parliament that “if the U.S. leaves us no other choice, then the European Union will react united,” adding that "ultimately, trade wars always cost both sides prosperity.”

Trump is hitting foreign steel and aluminum with a 25% tax in the hope that they will give local producers relief from intense global competition, allowing them to charge higher prices. He imposed similar tariffs during his first presidency but the move damaged relations with key U.S. allies and drove up costs for “downstream’’ manufacturers that buy steel and aluminum.

It is not clear what countermeasures would seek to apply, but officials and observers have said they would target Republican states and traditionally strong U.S. exports.

After Trump imposed steel tariffs in 2018, the EU imposed counter-tariffs on U.S.-made motorcycles, bourbon, peanut butter and jeans, among other items.

European Commission President Ursula von der Leyen speaks at the historic synchronisation of the Baltic states with the EU electricity system activation ceremony of the "Baltic Energy Independence Day" in Vilnius, Lithuania, Sunday, Feb. 9, 2025. (AP Photo/Mindaugas Kulbis, File)

EU Commission vice-president Maroš Šefčovič said Tuesday that the tariffs are "economically counterproductive, especially given the deeply integrated production chains established through our extensive transatlantic trade and investment ties.”

“We will protect our workers, businesses and consumers," Šefčovič said, but added that “it is not our preferred scenario. We remain committed to constructive dialog. We stand ready for negotiations and to find mutually beneficial solutions where possible.”

The EU estimates that the trade volume between both sides stands at about $1.5 trillion, representing some 30% of global trade. “There is a lot at stake for both sides,” he told the EU legislature.

While the EU has a substantial export surplus in goods, it says that is partly offset by the U.S. surplus in the trade of services.

The EU says that trade in goods reached 851 billion euros ($878 billion) in 2023, with a trade surplus of 156 billion euros ($161 billion) for the EU. Trade in services was worth €688 billion ($710 billion) with a trade deficit of 104 billion euros (107 billion) for the EU.

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Geir Moulson contributed from Berlin, Lorne Cook from Brussels

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