European Commission President Ursula von der Leyen stated that the EU must take action “to safeguard consumers and businesses.”
The EU plans to direct €26 billion towards targeting Republican strongholds through ‘counter-measures’ in response to tariffs enacted by Donald Trump.
Today, US trade tariffs of 25 percent on all global imports of steel and aluminum began to take effect.
“We firmly believe that in a world filled with geo-economic and political uncertainties, burdening our economies with such tariffs is not in our shared interest,” European Commission President Ursula von der Leyen remarked in a morning briefing.
She emphasized that the EU must act “to safeguard consumers and businesses.”
A senior EU official noted that counter-tariffs amounting to €26 billion will primarily target Trump’s closest allies, hitting products that carry significant symbolic weight.
Products subject to EU tariffs will include home appliances like refrigerators and lawn mowers, wood products vital to Republican states such as Virginia and Alabama, and agricultural items like soybean, beef, and chicken, which are critical for Nebraska and Kansas.
“These are predominantly Republican and red states, and that’s by design,” stated an EU source.
EU announces counter-measures against the US worth €26 billion, as US tariffs of 25 percent on EU steel and aluminium come into force. @vonderleyen #TradeWar #Trump #EU pic.twitter.com/3qmTv5k0hO
— Georg von Harrach (@georgvh) March 12, 2025
The US previously imposed tariffs on EU steel during Trump’s first term. The EU’s counter-measures had been paused due to an agreement with President Biden but now they will be reinstated.
According to the European Commission, these tariffs—which include items like Harley Davidson motorcycles, Tennessee whiskey, and Levi jeans—are expected to cost the US approximately €4.5 billion.
Furthermore, a larger wave of tariffs ranging from €18 to €21 billion is set to be enacted in mid-April unless Trump retracts his tariffs.
The European spirits sector expressed outrage over the news that it would be entangled once again in a trade conflict, which fundamentally revolves around a surplus of steel and metals globally.
“Once more, our spirits are collateral damage in a separate trade dispute,” remarked Pauline Bastidon from the trade association, Spirits Europe.
“We do not comprehend how this will contribute to resolving the larger, unrelated steel and aluminum dispute.”
The US has imposed these tariffs citing national security grounds, referencing legislation from the 1960s.
US Secretary of State Marco Rubio claimed that the US is implementing tariffs to “develop domestic capabilities.”
“Without steel and aluminum, one cannot construct warships or planes,” he added.
“The US administration has adopted a detrimental course of unjustified tariffs, leaving us with no options but to retaliate,” said the EU’s Trade Commissioner, Maroš Šefčovič.
However, “we will remain open to discussions,” Ursula von der Leyen stated, as she has yet to have a meeting with President Trump.
Canada and Mexico bore the brunt of Trump’s tariffs upon his return to the White House and are now also implementing countermeasures.
This afternoon, Canada announced it would be imposing close to 30 billion Canadian dollars (approximately €20 billion) in counter tariffs on the US.
An EU source indicated that although it is in communication with global partners, including Canada, its response to the US is not part of a coordinated initiative.
The UK has adopted a different approach and has not yet initiated any retaliatory tariffs against the US. British Prime Minister Sir Keir Starmer affirmed that “we will keep all options open.”
The UK aims to negotiate a mini trade agreement with the US, while Starmer works to maintain a favorable relationship with President Trump.
Furthermore, unlike the EU, the UK does not face a trade deficit with the US.
“I am disheartened to witness global tariffs concerning steel and aluminum,” Starmer expressed in the House of Commons earlier.
“We will approach this thoughtfully.”
When questioned about the UK’s decision to refrain from reacting, an EU official remarked that each country exercises its “sovereignty and considers its own interests” in making decisions.
“However, it is evident that Canada’s response and the EU’s response are perhaps making better progress in discussions with the United States.”
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