EU hits back at US with $28B in tariffs, effective from April 1
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Brussels: On Wednesday, the European Union announced retaliatory trade measures in response to the US increasing steel and aluminium tariffs to 25%. The EU's countermeasures, effective April 1, will impose tariffs on US industrial and agricultural products.
“As the US is applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros (USD 28 billion),” European Commission President Ursula von der Leyen said in a statement.
The European Commission acts on behalf of its 27 member states to manage and resolve trade and commercial disputes.
“We will always remain open to negotiation. 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 said.
In retaliation, the commission stated that the EU will impose tariffs on US exports, including steel and aluminium, as well as textiles, leather goods, home appliances, tools, plastics, wood, and various agricultural products such as poultry, beef, seafood, nuts, eggs, sugar, and vegetables.
President Donald Trump said his taxes would help create US factory jobs, but von der Leyen said, “Jobs are at stake. Prices will go up. In Europe and in the United States.” “We deeply regret this measure. Tariffs are taxes. They are bad for business and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy,” she said.
European steel companies are preparing for losses due to the US tariffs.
According to Henrik Adam, president of the Eurofer European steel association, the tariffs will "further worsen the situation" and potentially lead to a loss of up to 3.7 million tonnes of steel exports. The US is the second-largest export market for EU steel producers, accounting for 16% of total EU steel exports.
“Losing a significant part of these exports cannot be compensated by EU exports to other markets,” Adam said.
(inputs from PTI)