Headlines
Explainer-What challenges face the EU in first round of Trump tariffs?
Published by Global Banking & Finance Review®
Posted on March 10, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 10, 2025
2 min readLast updated: January 24, 2026
The EU is challenged by new U.S. tariffs on metals, affecting more imports than in 2018, with potential EU retaliation looming.
By Philip Blenkinsop
BRUSSELS (Reuters) - The European Union is bracing for its first round of U.S. tariffs on Wednesday, 25% tariffs on aluminium and steel imports, affecting more EU imports in value than duties U.S. President Donald Trump imposed on EU metal imports in 2018.
The following outlines the challenges the EU faces:
BIGGER HIT THAN 2018
In 2018, Trump's tariffs on steel and aluminium imports affected 6.4 billion euros ($6.9 billion) of EU metal shipments.
The United States now plans to reapply the 2018 tariffs, while raising the aluminium duty to 25% from 10%.
The tariffs will also apply to 'derivative products' such as steel machinery parts and aluminium-rich items from dishwashers to car bumpers, tennis rackets, bows and arrows.
Swiss-based monitoring service Global Trade Alert has assessed the value of EU exports of such derivative products at $20.3 billion. That would be in addition to about 8 billion euros ($8.7 billion) of the metals themselves.
RETALIATION
In 2018, the EU hit back with its own duties on 2.8 billion euros of U.S. imports. Tariffs on a further 3.6 billion euros of imports were due to take effect three years later, but were suspended as President Joe Biden and the bloc agreed a truce.
These countermeasures, targeting U.S. steel and aluminium, bourbon, motorcycles and orange juice, will automatically reapply on April 1.
The European Commission, which coordinates trade policy for the 27-nation EU, needs to decide whether to bring these countermeasures forward and find other U.S. products to target.
Whatever tariff measures the Commission proposes will apply unless a "qualified majority" of EU members oppose them.
NEGOTIATIONS?
European Trade Commissioner Maros Sefcovic said the U.S. did not seem to be engaging in talks to avert tariffs and the EU would respond to protect its businesses, workers and consumers.
EU Director General for Trade, Sabine Weyand, said early in March it remained unclear what measures would be imposed, and that there were questions over the product scope and how derivative products would be treated.
The Commission said it was ready to sit down with U.S. counterparts to discuss their complaints.
($1 = 0.9227 euros)
(Reporting by Philip Blenkinsop and Tiffany Vermeylen; editing by Bernadette Baum)
The U.S. is reapplying tariffs on aluminium and steel imports, increasing the aluminium duty to 25% from 10%.
In 2018, the EU retaliated with its own duties on 2.8 billion euros of U.S. imports, which included products like bourbon and motorcycles.
The European Commission coordinates trade policy for the EU and must decide whether to bring forward countermeasures against U.S. products.
European Trade Commissioner Maros Sefcovic indicated that the U.S. does not seem to be engaging in talks to avert tariffs.
The value of EU exports of derivative products affected by the tariffs is estimated at 20.3 billion euros, in addition to 8 billion euros of direct metal shipments.
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