In the early hours of Wednesday in Brussels, European Commission President Ursula von der Leyen spoke out against President Donald Trump’s recently instated 25% tariffs on steel and aluminum, which took effect after midnight in Washington D.C. The European Union responded almost immediately, asserting that ‘Tariffs are taxes. They are bad for business, and worse for consumers.’ The EU’s targeted countermeasures will begin on April 1, affecting a range of popular American goods, including jeans, motorbikes, bourbon, and peanut butter.
These initial tariffs mirror the counter actions witnessed during Trump’s earlier tariffs in 2018 and 2020. The EU is set to escalate its responses with a broader list that may encompass a variety of textiles, home appliances, and food products dependent on consultations with stakeholders over the next two weeks. This extensive list, almost 100 pages long, highlights products ranging from meat and dairy to fruit, spirits, and even everyday items like toilet seats and lawnmowers.
As a result, consumers in Europe brace for increased prices on supermarket shelves, particularly concerning American imports. Industry leaders like Dirk Jandura from Germany’s BGA federation express concern that the burden of these tariffs will not be manageable for businesses, warning that prices for essential products like orange juice and bourbon will force consumers to pay more.
The EU’s focused retaliatory measures amount to an estimated €26 billion ($22 billion) targeting U.S. exports. Olof Gill, an EU spokesman, emphasized the preparedness of the EU for this outcome, yet the potential for further escalation remains high with President Trump alleging that the U.S. has been ‘abused for a long time.’ He hinted at a forceful American reaction to any EU countermeasures.
EU Council President António Costa has called for the U.S. to de-escalate, underscoring the importance of a unified European front as countries like Austria express growing concerns over the potential fallout of a trade war. Christoph Neumayer from the Federation of Austrian Industries echoed these sentiments, emphasizing the crucial relationship between the U.S. and Europe in terms of exports and imports, further showcasing how a continued trade conflict could spell trouble for both economies.