The EU responds to Trump's tariffs with countermeasures worth €26 billion.

BrusselsThe European Union announces the first response to the trade war started by Donald TrumpBrussels accuses Washington of pushing through "unjustified" tariffs and announced early this morning that it will respond with countermeasures against US imports into the EU, totaling €26 billion. This is a figure similar to the expected White House tariffs on European exports. Europe is paying Trump back in kind. "The European Union must act to protect its consumers and businesses. The countermeasures we are implementing are strong, but proportionate," asserted European Commission President Ursula von der Leyen.

Thus, the EU executive wants to make it clear that it will not stand idly by in the face of the 25% tariffs on steel and aluminum imports into the United States, which came into effect this Wednesday. Specifically, Brussels will reactivate on April 1 the tariffs it already applied in response to the trade war Trump started during his first term and which were in force from 2018 to 2020. This decision is intended to respond to part of the economic damage the EU will suffer with an increase in tariffs of €0.

In addition, Brussels intends to apply new tariffs against US products worth €18 billion and, in this way, match the impact of the new US rates against the European Union, which the community executive itself estimates will rise to €0. In any case, despite the fact that the European Commission has the powers in matters of trade relations, it plans to consult this measure with the Member States and interested parties, and for it to come into force in mid-April.

Thus, community sources explain that the European Union will impose additional import duties on various American agricultural products, household appliances, jeans, Harley-Davidson motorcycles, and, among others, bourbon whiskey. Furthermore, they assert that this time the impact of the trade war may be greater than in Trump's first term because the White House has not excluded any products that may contain steel or aluminum components. And, for the same reason, Brussels has also decided to expand the scope of its countermeasures.

However, Brussels remains open to the Trump administration and is willing to find a negotiated solution with Washington. She reiterated that the announced measures "can be rescinded at any time." "Trade relations between the European Union and the United States are the largest in the world. They have brought prosperity and security to millions of people, and trade has created millions of jobs on both sides of the Atlantic," the President of the European Commission stated, "deeply" regretting the US measure.

In fact, EU sources point out that there are still days left before the countermeasures are implemented and that there is a "time window" to reverse the escalation of the trade war. In this regard, Von der Leyen stated that she "trusts" that the European Commissioner for Trade, Maroš Šefčovič, "will reestablish contacts with the US to explore an alternative solution." However, the same sources suggest that Brussels' decision on Wednesday is intended to serve as a warning to Trump, and warn that they are willing to speak "the same language as the White House" in potential negotiations to try to end the trade war.

"Bad for businesses and consumers"

In this regard, the President of the European Commission warned that tariffs "are bad taxes for businesses and even worse for consumers," and stressed that they "disrupt supply chains" because they "bring uncertainty to the economy." "Jobs are at stake and prices will rise, in Europe and the United States," von der Leyen predicted.

Along the same lines, the President of the European Central Bank (ECB), Christine Lagarde, warned last week that the trade war threatened by Washington could have a negative impact on the EU economy and, for example, increase price increases, which are stabilizing at around 2%. "The uncertainty is enormous," the French leader warned.

In turn, the Spanish Minister of Industry and Tourism, Jordi Hereu, lamented the entry into force of the United States tariffs since the ministerial meeting on Competitiveness held this Wednesday in Brussels and asserted that in a trade war "all" parties lose. Therefore, the former mayor of Barcelona has supported the European Commission's desire to avoid an escalation of tariffs with the United States. "We want to avoid a trade war," insisted the Minister of Industry.

The steel and aluminum sector has also lamented the White House's decision. In a statement, the European industry association (Eurofer) threatens to be "the final nail in the coffin of the European steel industry" and has urged the EU to implement "effective safeguards." "If European steel disappears, so will the automotive, security and defense, and other sectors. What is at stake is European sovereignty," the statement reads.