EU announces retaliatory tariffs in response to US tariffs on steel, aluminium and related products

On 12 March 2025, the European Union announced its intention to impose retaliatory tariffs in response to the resumption and expansion of tariffs on imports of steel and aluminium into the US, which began at 12:01am EDT on the same day (as reported in our previous alert). In this regard, the European Commission will instigate a two-fold response, which, unless an agreement is reached between the parties, will be implemented in April 2025.

The European Commission's response will, firstly, allow the current EU suspension of existing 2018 and 2020 countermeasures against the US to lapse on 1 April. These countermeasures were implemented in response to US tariffs on EU steel and aluminium exports implemented during the first Trump administration. Secondly, the Commission intends to implement a new package of countermeasures on US goods by mid-April, after consultations with EU Member States and stakeholders.

In its announcement, the EU reiterated its openness to negotiations with the US to avoid further escalations. However, the US has not yet indicated a willingness to engage in discussions which may avoid the implementation of the proposed EU measures.

Background

The first Trump administration introduced tariffs on €6.4 billion of European steel and aluminium products in 2018 under Section 232 of the Trade Expansion Act of 1962, which provided for the restriction of US imports of products which are found to threaten to impair national security. These US tariffs, which impose a 25% duty on imports of steel and a 10% duty on imports of aluminium, have been in place since 2018. Subsequently in January 2020, the Trump administration expanded these tariffs to cover certain derivative products of steel and aluminium, which affected EU goods valued at around €40 million.

In June 2018, the EU responded by introducing countermeasures on €2.8 billion of US goods and implemented further countermeasures in April 2020 in response to the additional US tariffs. The second phase of tariffs pursuant to the 2018 measures was scheduled to enter into force on 1 June 2021, but the EU subsequently suspended the countermeasures implemented in 2018 and 2020 until 31 March 2025 following discussions with the US to allow the parties to reach a long-term solution.

EU countermeasures effective from April 2025

The first phase of the EU's response is the reimposition of the above-described rebalancing measures imposed in 2018 and 2020. These suspended measures will be automatically reinstated and therefore apply immediately from 1 April. The measures will affect specified US goods such as Harley-Davidson motorbikes, jeans and bourbon whiskey.

Under the second phase of the EU's countermeasure response, the EU intends to impose new tariffs under the EU's Enforcement Regulation (as the subject US tariffs are considered a safeguard measure). The list of specific US goods proposed to fall within the scope of these tariffs is extensive and subject to change. It includes a wide range of agricultural products (including beef, poultry, eggs, dairy, vegetables and sugar); alcoholic beverages (including wine, beer, champagne, gin and cider) industrial products (including steel and aluminium); clothing (including pyjamas, shirts, skirts and jackets); plastics; household goods (including cutlery and lawnmowers) and wood products (including wooden furniture).

To initiate the second EU countermeasure phase, a stakeholder consultation will run until 26 March. The Commission will then finalise its proposal for the adoption of countermeasures for the comitology process, whereby the Commission will consult a committee composed of EU Member State representatives. Once this process is completed, the Commission aims to adopt the legal act imposing the additional countermeasures by mid-April.

In addition, EU officials have flagged the possibility of further tariffs on EU imports of US goods in the future.

We provide below a list of partners and senior attorneys within the Global International Trade Practice of White & Case. Please contact any of them with questions about this report or other trade issues.

Washington, DC: David Bond (Partner); Ryan Brady (Partner); Cristina Brayton-Lewis (Partner); Jay Campbell (Partner); Nicole Erb (Partner); Farhad Jalinous (Partner); David Lim (Partner); Gregory Spak (Partner)
Mexico: Francisco de Rosenzweig (Partner); Carlos Vejar (Local Partner)
Brussels: James Killick (Partner); Sara Nordin (Partner)
Geneva: Jasper Wauters (Partner); Charles Julien (Partner)
London: Chris Thomas (Counsel); Ed Pearson (Senior Associate)
Paris: Orion Berg (Partner)
Tokyo: William Moran (Partner)

Kate Malone (Trainee, Brussels) and Ruth Benbow (Knowledge Manager, London) contributed to the development of this publication.

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