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The European Union is seeking negotiations with the United States to avoid broad tariffs on steel and aluminum but is also ready to implement countermeasures if necessary. On April 7, EU leaders convened for the Foreign Affairs Council on trade to discuss the economic impact of US tariffs and a potential EU response.
EU’s Response to US Tariffs
The US has imposed tariffs on a significant portion of EU exports, valued at approximately €380 billion ($415 billion) annually.
“Some 70% of our total exports… are facing tariffs of 20% or 25%, or even higher when combined with existing Most Favored Nation tariffs, such as the 27.5% duty on passenger cars,” EU trade commissioner Maros Sefcovic stated during an April 7 press conference.
While the EU prefers dialogue, it is also prepared for swift retaliatory action. The European Commission has compiled a list of countermeasures, based on input from 660 stakeholders and member states, which will be voted on April 9 and finalized by April 15. Tariffs will take effect immediately for some products and on May 15 for the remainder.
Although specific countermeasures have not been disclosed, sources indicate the EU may impose a reciprocal 25% tariff on steel and aluminum imports from the US, similar to measures proposed in March.
US Tariff Impact and EU’s Trade Defense Strategy
On April 2, the US White House introduced "liberation" tariffs affecting all US trade partners, including the EU. Consequently, all EU-origin imports to the US now face a blanket 20% tariff, further straining European manufacturing.
While no new steel tariffs were introduced at that time, the US had already implemented tariffs up to 25% on steel, aluminum, and certain steel-containing products from the EU and other countries on March 12.
In 2024, the EU exported 2.5 million tonnes of carbon steel to the US, representing 16% of its total 15.8 million tonnes of carbon steel exports. EU steel producers stress the urgent need for additional trade defense measures to counter the possible redirection of global steel exports into the EU market due to US restrictions.
EU Steel Sector Challenges and Economic Importance
Europe’s steel sector, with approximately 500 production sites across 22 member states, plays a crucial economic role. The sector contributes €80 billion to the EU’s GDP and supports over 2.5 million jobs.
Despite its importance, the European steel industry has seen declining production levels. In 2024, EU-27 steel production reached 129.5 million tonnes, up 2.6% from 2023 but still 15.1% lower than the 152.5 million tonnes recorded in 2021.
Industry sources highlight ongoing challenges, including low capacity utilization rates, averaging below 70%, while the share of imports in EU steel consumption continues to rise.
With negotiations ongoing, the EU remains open to a diplomatic solution but is prepared to take firm action to safeguard its industry and economic interests.
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