EU Proposes 25% Retaliatory Tariffs on Some US Goods in Response to Steel, Aluminum Duties
The European Commission has proposed 25% retaliatory tariffs on some U.S. goods in response to the tariffs on steel and aluminum President Donald Trump imposed last month (see 2503120042), according to a document seen by Reuters, the news service reported April 7.
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The document reportedly says that some of the tariffs will come into effect May 16 and others later in the year, on Dec. 1. The goods affected include diamonds, dental floss, sausages, nuts and soybeans.
EU Trade Commissioner Maros Sefcovic said earlier in the day that the counter-tariffs would cover less than $26 billion in U.S. goods. "When it comes to steel, aluminum and derivatives ... we are talking about 26 billion euros. We are finalizing the list tonight ... but I can tell you that it will not be up to the level of 26 billion euros, because we've been listening very carefully to our member states," he told reporters, according to Reuters.
In a press conference following a meeting of the Foreign Affairs Council April 6 focused on trade, Sefcovic said that the "current trade situation with the United States, our most significant partner, is in a tough spot."
He said that after Trump's reciprocal tariffs were announced, "some 70 percent of our total export[s]" are facing tariffs of 20% to 25%. "To put it in perspective, that's over €80 billion in duties -- an eleven-fold jump from the €7 billion the US currently collects."
He said that his focus is on "initiating meaningful negotiations with the U.S. Administration," and he thanked U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer for "maintaining an open and candid line of communication with us."
He acknowledged that the EU-U.S. trade relationship could "benefit from a fresh look and a boost in strategic areas," but he emphasized the strategic importance of the trans-Atlantic relationship. He also reiterated EU Commission President Ursula von der Leyen's offer of "zero-for-zero tariffs for cars and industrial goods."
He noted the difficulty of negotiating with the U.S., saying that "engaging the U.S. will take both time and effort," but that the EU is prepared to negotiate, "whenever our American partners are ready." In the meantime, he proposed diversifying the EU's trade network with "partners around the globe, like India, Indonesia, Thailand, the Philippines or in the Gulf region."
"Finally, let's not forget that while the U.S. has decided to step back from parts of the global trading system, that system is still crucial for the EU and the rest of the world," he said. "The U.S. makes up 13% of global goods trade. Our priority, along with the rest of the WTO, is to protect the remaining 87% and make sure that the global trade system prevails for the rest of us."