EU unveils €26bn in retaliatory tariffs against the US

The European Union has announced retaliatory measures following the Trump administration’s decision to impose 25% tariffs on all steel and aluminium imports.

In response, the EU will implement duties on industrial and agricultural products worth €26 billion, set to take effect on April 1.

As the world’s largest trading bloc, the EU had anticipated the U.S. tariffs and prepared accordingly, though the move further strains already tense transatlantic relations.

Last month, Washington warned Europe that it would need to take responsibility for its own security moving forward.

Meanwhile, Britain has opted not to impose its own retaliatory measures, instead calling Washington’s decision “disappointing.”

European ComThe UK remains outside the scope of the EU’s retaliatory measures due to Brexit.

President Ursula von der Leyen expressed disappointment over the U.S. decision, stating, “We deeply regret this measure. We are ready to engage in meaningful dialogue.” She emphasized the EU’s willingness to negotiate, adding, “In a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs.”

The European Commission has announced retaliatory tariffs on U.S. steel and aluminum products in response to the Trump administration’s metal tariffs, which take effect today.

Germany, Ireland, and Italy set to bear the brunt of U.S. tariffs

Germany, Ireland, and Italy—the only three EU countries with a goods trade surplus with the U.S.—are expected to be the most affected by the new tariffs.

According to official U.S. data, Germany had a €57 billion trade surplus in 2023, exporting €144 billion worth of goods to the U.S.. German-made cars accounted for €22 billion, while live medical products, including vaccines, blood, antisera, and cultures, contributed €11.4 billion. Meanwhile, the U.S. exported €87 billion worth of goods to Germany, including €8.25 billion in cars.

Ireland, with a €50 billion trade surplus in 2023, ranked second. This was largely driven by pharmaceutical exports from U.S. multinationals such as Pfizer, which manufacture in Ireland. Agricultural products, including butter, also contributed significantly to the surplus.

In third place, Italy recorded a €41 billion trade surplus in 2023, exporting around €65 billion worth of goods to the U.S.. Packaged medicines and cars were key exports, accounting for €5 billion and €4.66 billion, respectively.