The European Union (EU) is working to avoid a trade war with the United States after Washington announced a 25% tariff on steel and aluminium imports set to take effect on March 12. Instead of immediate retaliation, EU officials are focusing on negotiations to reach a solution before the tariffs disrupt economic relations.
EU Urges U.S. to Reconsider Tariffs
European Commission President Ursula von der Leyen has called the new tariffs “unjustified” and warned that they could harm transatlantic trade. She emphasized that while the EU is ready to respond with countermeasures, its priority remains finding a diplomatic solution.
On Wednesday, EU trade chief Maroš Šefčovič held initial talks with U.S. officials, including Commerce Secretary nominee Howard Lutnick and U.S. Trade Representative nominee Jamieson Greer. The discussions aimed to prevent escalation and explore possible compromises.
“Cooperation is our preferred option. We remain committed to dialogue while defending EU interests,” an EU spokesperson said.
Germany and Spain Support a Unified Response
EU countries are backing a common approach to the issue. Spain’s Trade Minister Carlos Cuerpo stressed that an agreement is needed to avoid long-term consequences, while Germany’s Economy Minister Robert Habeck called for unity in EU negotiations.
Possible EU Retaliation – Will 2018 Tariffs Return?
Although the EU prefers negotiation, it has prepared countermeasures in case the talks fail. One option is to reinstate tariffs from 2018, which targeted U.S. exports such as bourbon whiskey, motorcycles, and orange juice. These tariffs were previously lifted under a trade agreement with former U.S. President Joe Biden.
A European industry source stated that the EU wants to signal its readiness to retaliate while keeping negotiations open.
How Much Is at Stake?
The U.S. is the second-largest market for EU steel exports, with shipments worth €3 billion ($3.1 billion) annually. EU aluminium exports to the U.S. totaled €2.4 billion in the first 11 months of 2024.
European industry groups, including European Aluminium, have urged the European Commission to take immediate action to protect the sector.
With one month left before the tariffs take effect, the EU’s next steps will determine whether this dispute leads to a trade conflict or a negotiated settlement.
