The European Union has announced retaliatory tariffs on a range of U.S. industrial and agricultural products in response to the Trump administration’s decision to impose 25% tariffs on all steel and aluminum imports. The countermeasures, worth approximately 26 billion euros ($28 billion), aim to put economic pressure on key Republican-held states while attempting to limit further damage to European businesses.
The EU’s response was swift, coming just hours after Washington unveiled its new tariffs. The move escalates already tense transatlantic trade relations, which have been under strain following recent U.S. warnings that Europe must take greater responsibility for its own security.
The EU’s countermeasures include tariffs not just on steel and aluminum but also on textiles, home appliances, and agricultural goods. The measures are designed to impact industries in Republican-dominated states, particularly those with strong farming sectors.
Among the affected products are soybeans from Louisiana, home to House Speaker Mike Johnson, as well as beef and poultry from Kansas and Nebraska. Agricultural goods from Alabama, Georgia, and Virginia are also included on the list, mirroring a strategy used during Trump’s first term when the EU targeted bourbon, motorcycles, peanut butter, and jeans.
European Commission President Ursula von der Leyen stated that while the EU remains open to negotiations, it will not stand idly by in the face of U.S. protectionism.
“As the U.S. applies tariffs worth $28 billion, we are responding with countermeasures worth 26 billion euros,” von der Leyen said. “We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs.”
Von der Leyen warned that Trump’s tariffs would ultimately harm both sides of the Atlantic, increasing costs for consumers and disrupting supply chains.
The American Chamber of Commerce to the EU criticized both the U.S. tariffs and the EU’s retaliatory measures, arguing that the escalating trade conflict would harm jobs, economic prosperity, and security on both sides.
“The two sides must de-escalate and find a negotiated outcome urgently,” the chamber said in a statement.
This is not the first time the EU has responded to Trump’s aggressive trade policies. During his first term, the administration imposed similar steel and aluminum tariffs, prompting European countermeasures that targeted U.S.-made products such as bourbon and motorcycles.
This time, the EU’s response will unfold in two phases. On April 1, the bloc will reinstate previous “rebalancing measures” that had been suspended under the Biden administration. Then, on April 13, additional duties will take effect, targeting 18 billion euros ($19.6 billion) worth of U.S. exports to Europe.
EU Trade Commissioner Maroš Šefčovič, who traveled to Washington last month to discuss trade concerns, expressed frustration over the U.S. position.
“I argued to avoid the unnecessary burden of measures and countermeasures, but you need a partner for that. You need both hands to clap,” Šefčovič said in Strasbourg.
The European steel sector is expected to be among the hardest hit by Trump’s tariffs, with industry group Eurofer estimating potential losses of up to 3.7 million tons of steel exports. The U.S. represents the second-largest market for EU steel producers, accounting for 16% of total exports.
With transatlantic trade valued at around $1.5 trillion annually—roughly 30% of global trade—both sides have much to lose from prolonged economic conflict. While the EU maintains a goods trade surplus with the U.S., it argues that this is counterbalanced by an American surplus in service exports.
Unlike the EU, the United Kingdom has decided against immediate retaliatory tariffs, with British Business Secretary Jonathan Reynolds stating that London will “continue to engage closely and productively with the U.S. to press the case for U.K. business interests.”
However, Reynolds did not rule out future trade action, emphasizing that “all options remain on the table, and we won’t hesitate to respond in the national interest.”
As tensions rise, it remains to be seen whether Washington and Brussels can find a compromise—or whether this latest trade dispute will escalate into a full-blown economic conflict.
