EU to retaliate against US steel and aluminium tariffs

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The EU mentioned it might retaliate against US tariffs on European steel and aluminium exports with “agency and proportionate countermeasures”, as officers in Brussels rushed to avert a commerce battle with Washington.

“The EU will act to safeguard its financial pursuits. We are going to defend our employees, companies and customers,” mentioned European Fee president Ursula von der Leyen on Tuesday.

US President Donald Trump introduced that the 25 per cent tariffs on all steel and aluminium imports would take impact on March 12.

EU member states have already accredited levies of up to 50 per cent on €4.8bn of US imports and may shortly take a closing vote to impose them. The merchandise would come with bourbon whiskey, Harley-Davidson bikes, motorboats and some steel and aluminium.

Von der Leyen will meet US vice-president JD Vance in Paris to focus on the problem whereas the fee referred to as a gathering of commerce ministers for Wednesday afternoon.

EU commerce commissioner Maroš Šefčovič advised the European parliament the bloc was aiming for talks. “We stay dedicated to constructive dialogue. We stand prepared for negotiations, and to discover mutually helpful options the place attainable.

“There’s a lot at stake for each side. We would like to make it work, not least as a result of it merely is sensible.”

He added: “The EU sees no justification for the imposition of tariffs on our exports, which is economically counterproductive. Particularly given the deeply built-in manufacturing chains, established by our in depth transatlantic commerce and funding ties. 

“Tariffs are taxes; unhealthy for enterprise, [and] worse for customers.”

The whiskey tariffs have been first levied in response to metals tariffs imposed by Trump in his first time period as president. That dispute was frozen beneath former president Joe Biden however not resolved.

They are going to routinely come into impact on the finish of March, until a majority of EU nations agree to accomplish that sooner.

Brussels may additionally widen its retaliation however von der Leyen pressured any response can be “proportionate”.

The EU steel business is already shrinking, with manufacturing hitting its lowest stage in 2023. The tariffs on exports of about 3.7mn tonnes a 12 months will hit it onerous, mentioned Axel Eggert, director-general of Eurofer, the business physique.

“The final tonne is essentially the most worthwhile tonne as a result of we’ve such excessive mounted prices,” he mentioned. 

Steel from elsewhere on the earth that has been pushed out of the US markets is also exported to Europe, additional miserable costs, he mentioned.

The UK has not threatened to retaliate against the US steel and aluminium tariffs, as Sir Keir Starmer makes an attempt to keep away from a commerce battle with Trump and as a substitute deepen financial ties, particularly in know-how and skilled providers.

Though the prime minister’s allies say no resolution has been taken on whether or not to reply to the newest tariffs, the federal government has tried to downplay expectations of any reprisals. It mentioned the US accounted for under 5 per cent of UK steel exports in 2023 and 6 per cent of aluminium exports.

“It’s vital to see this within the context of our exports,” mentioned a spokesperson for Starmer.

Though the UK authorities backs free commerce, it has additionally drawn up contingency plans within the occasion of an escalation.

The UK steel business has claimed that Trump’s transfer can be a “devastating blow” to the sector.