The European Union is expanding its list of potential tariffs on American goods as it braces for a renewed trade conflict with Washington.
US President Donald Trump has announced plans to impose 25% tariffs on steel and aluminium exports, with the new duties potentially taking effect as early as 12 March. If fully implemented, the measures could affect up to €28 billion ($29.3 billion) worth of European exports, prompting Brussels to prepare countermeasures.
A Renewed Trade Clash
Trump’s latest move is part of his broader effort to reshape global trade rules, using tariffs as leverage to pressure trading partners into making concessions. The EU, however, sees the new restrictions as unjustified and a direct threat to its industrial sector. European officials fear that the scope of the measures could go beyond raw metals, extending to derivative products, which would significantly increase their impact.
During Trump’s first term, Washington imposed similar duties on EU steel and aluminium, citing national security concerns. The move affected nearly $7 billion in European exports and prompted Brussels to introduce retaliatory tariffs on politically sensitive American goods, including Harley-Davidson motorcycles and Levi Strauss jeans. While a temporary truce was reached under Joe Biden’s administration in 2021, which resulted in a partial suspension of US measures, Trump’s return to office has reignited the dispute.
EU’s Response Strategy
In response to Trump’s latest announcement, the European Commission has expanded its list of potential US goods that could be subjected to tariffs. The previous list, compiled during the last trade dispute, remains frozen until the end of March but will be automatically reinstated if Washington proceeds with its new restrictions. The final scope of these countermeasures is still under discussion, as Brussels assesses the potential economic impact, alternative supply chains, and how the levies might affect different EU member states.
The EU’s trade chief, Maros Sefcovic, has briefed European ambassadors following his recent visit to Washington, where he met with senior US officials, including Commerce Secretary Howard Lutnick and Trump’s nominee for US Trade Representative, Jamieson Greer. While the discussions were described as positive, no concrete negotiations took place, and the EU remains uncertain about the full extent of Trump’s trade intentions.
To avoid a full-scale trade confrontation, Brussels has floated the possibility of lowering tariffs on industrial goods, including automobiles, in an attempt to meet one of Trump’s long-standing demands. However, any such move would need to be part of a broader mini trade deal that includes multiple sectors to comply with World Trade Organization (WTO) regulations. Additionally, Washington is seeking long-term liquefied natural gas (LNG) contracts with Europe and has raised concerns over EU digital taxation policies.
Escalating Transatlantic Tensions
The looming trade dispute comes at a time of broader strain in transatlantic relations, with Trump’s administration prioritising an “America First” agenda that has already unsettled European leaders. German Chancellor Olaf Scholz has insisted that the EU is strong enough to withstand the pressure of new US tariffs but remains hopeful that diplomacy can prevent an economic standoff.
With the deadline for Trump’s tariffs fast approaching, Brussels is weighing its next steps carefully. If Washington moves forward with the 25% duties as planned, the EU appears ready to respond with targeted countermeasures, setting the stage for a fresh round of transatlantic economic friction.
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