The European Union has estimated that the initial wave of tariffs imposed by the United States on steel and aluminium imports could result in export losses of nearly €28bn (approximately $29.3bn) for the bloc.
This assessment was presented by the European Commission’s trade commissioner, Maroš Šefčovič, during a meeting with EU ambassadors, following his recent visit to Washington.
Commissioner Šefčovič’s remarks came in the context of renewed tensions in transatlantic trade relations. During his visit to Washington, the commissioner sought to engage American counterparts with a view to reducing the economic repercussions of the tariffs on the European economy. The effort underscores the EU’s determination to mitigate adverse outcomes and maintain stable trade flows between the two regions.
The tariffs, which were initially announced by former US President Donald Trump, are designed to impose a 25% duty on imports of steel and aluminium into the United States. This decision is expected to take effect as early as 12 March. While the tariffs have been in discussion for some time, the current estimates represent the most comprehensive evaluation of their potential impact on EU exports to date. According to the European Commission, the damage could amount to nearly €28bn in lost export revenue.
The scope of the new tariffs is expected to be broader than that of previous measures. The commission’s assessment indicates that the current tariffs could affect up to four times as many products as were subject to trade restrictions during Trump’s earlier term. Although the precise range of goods remains fluid, the possibility of an expanded tariff regime has prompted concern among European officials and industry stakeholders. The uncertainty surrounding the final list of affected products adds another layer of complexity to an already challenging trade environment.
The European Commission has not refrained from criticising the US decision. Even before the official announcement of the tariffs, the commission labelled the planned measures as “illegal and counterproductive”.
The potential losses estimated by the EU come at a time when global trade dynamics remain fragile. The uncertainties surrounding the tariff regime contribute to an atmosphere of cautious anticipation among market participants. European companies, particularly those involved in the steel and aluminium sectors, face significant challenges in adjusting their production and export strategies in response to the anticipated changes. Trade disruptions of this magnitude are likely to have a cascading effect on associated industries, as well as on broader economic conditions within the EU.
Diplomatic efforts continue as the European Commission seeks to engage with its American counterparts on the issue. Commissioner Šefčovič’s visit to Washington was part of a broader strategy aimed at safeguarding European economic interests. In meetings with American officials, he emphasised the importance of dialogue and negotiation in addressing the tariff measures, advocating for a reconsideration of their scope and application. The commission is expected to explore all available avenues to ensure that the impact on EU exports is minimised and that the transatlantic relationship remains robust.
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