EU Gears Up for Tariff Turmoil as U.S. Imposes New Duties

The European Union is preparing for new U.S. tariffs on aluminium and steel imports, revisiting 2018 tensions with an increased duty to 25%. This move affects a broader array of EU products valued over $20.3 billion. The EU considers countermeasures amid uncertain U.S. negotiations.

The European Union is bracing itself for a new wave of tariffs from the United States, set to be imposed on Wednesday. The U.S. plans to levy 25% duties on aluminium and steel imports, affecting more EU imports in value than the tariffs implemented by U.S. President Donald Trump in 2018.

Back in 2018, Trump's tariffs impacted €6.4 billion ($6.9 billion) worth of EU metal shipments. The new round not only reinstates these tariffs but intensifies them, increasing the aluminium duty to 25% from a prior 10%. Expanding the scope, tariffs will also now apply to derivative products like steel machinery parts and aluminium-rich items, including dishwashers, car bumpers, and tennis rackets—valued at $20.3 billion.

As EU countermeasures stand prepared to re-engage on April 1, the region ponders its next move. European Trade Commissioner Maros Sefcovic noted a lack of dialogue with U.S. counterparts, emphasizing that the EU will act to defend its interests. Future negotiations remain uncertain, while the European Commission is keen to reopen discussions with the United States to alleviate the brewing trade conflict.

(With inputs from agencies.)