EU Delays Retaliatory Tariff Plans Against U.S. Imports
The European Union had initially planned to impose tariffs on U.S. imports in retaliation for U.S. tariffs on European steel and aluminum products. However, an EU spokesperson stated on Thursday that the plan will be postponed until mid-April in order to allow more time for discussions with the U.S. government. Despite this delay, the EU emphasized that it does not signify a softening of its position, and the EU remains prepared to impose retaliatory tariffs on U.S. goods worth up to 26 billion euros (approximately 28 billion USD).
EU Adjusts Timing of Retaliatory Measures, Emphasizing No Impact on Action Strength
The EU spokesperson pointed out that the delay is aimed at adjusting the timing of two waves of retaliatory measures to make them more consistent. He added, “This adjustment is merely a slight change in timing and does not affect the strength of our countermeasures, particularly as the EU remains ready to impose retaliatory tariffs on U.S. goods amounting to up to 26 billion euros.” Earlier in March, the EU had indicated that it would adopt a dual-track strategy to respond to U.S. tariff actions: on one hand, reinstating previously suspended tariffs, and on the other, imposing new tariffs on additional U.S. exports to Europe.
Wide Range of Affected Products, Including Steel, Aluminum, Agricultural Products, and Industrial Goods
Under the EU’s plan, these retaliatory tariffs will cover a wide range of U.S. export goods, including industrial-grade steel and aluminum materials, semi-finished and finished steel and aluminum products, and related derivative products such as mechanical parts and knitting tools. Additionally, the EU may impose tariffs on U.S. exports of whiskey (such as bourbon whiskey), agricultural products, textiles, leather goods, household appliances, and other products to ensure the breadth of the impact.
“Our goal is to find the appropriate product balance that takes into account the interests of EU manufacturers, exporters, and consumers,” the EU spokesperson said.
Retaliatory Measures Target U.S. Steel and Aluminum Tariffs from the Trump Era
The EU’s tariff action stems from former U.S. President Trump’s decision to impose a 25% tariff on imported steel and aluminum products during his tenure. At that time, European Commission President Ursula von der Leyen had stated that the EU must “take action to protect businesses and consumers.” The EU also emphasized that this round of retaliatory tariffs is broader than the previous one because the new U.S. tariff measures have a wider scope, significantly increasing the value of affected European trade. As a result, the EU aims to expand its retaliatory measures to ensure that the overall value matches the impact of the new U.S. tariffs.
EU Continues Negotiations with the U.S., Seeking Solutions
EU Trade and Economic Security Commissioner Maros Sefcovic stated on Thursday that the EU is still actively negotiating with the U.S. to seek possible solutions. “President von der Leyen has authorized me to continue dialogue with the U.S. to find a solution,” Sefcovic mentioned in his speech before the European Parliament’s Committee on International Trade. He further emphasized that the EU will continue to be prepared to take action and will adjust its strategy flexibly based on developments in the U.S.
Furthermore, Sefcovic stated that the EU plans to assess the U.S. actions on April 2 and will decide whether to activate retaliatory tariffs. Notably, this date coincides with the point in time when the Trump administration had set the tariff imposition on other countries, making this trade dispute even more symbolic.
Risk Reminder
Cryptocurrency investments carry high risks, with prices subject to extreme fluctuations. You may lose your entire principal. Please carefully evaluate the risks.