The EU's executive branch on Friday pledged to respond swiftly and firmly to President Donald Trump’s tariffs on steel and aluminum.
The European Commission said in a statement that Trump’s proposed "reciprocal” trade policy goes "in the wrong direction."
"The EU will take firm and immediate action against unjustified barriers to free and fair trade, including when tariffs are used to challenge legitimate and non-discriminatory policies,” the Commission said. "The EU will always protect European businesses, workers and consumers from unjustified tariff measures.”
The Commission, which negotiates trade relations on behalf of the 27-nation bloc, said the EU has some of the lowest tariffs in the world and sees no justification for increased U.S. tariffs on its exports.
"Tariffs are taxes. By imposing tariffs, the US is taxing its own citizens, raising costs for business, stifling growth and fuelling inflation,” it said. "Tariffs heighten economic uncertainty and disrupt the efficiency and integration of global markets.”
Earlier this week, the Commission said U.S. tariffs on steel and aluminum would not go unanswered.
It is not yet clear what countermeasures would apply. Trump slapped similar tariffs on EU steel and aluminum during his first term, which enraged European and other allies. The EU imposed countermeasures in retaliation at the time, raising tariffs on U.S.-made motorcycles, bourbon, peanut butter and jeans, among other items.
The EU estimates that annual trade volume between both sides stands at about $1.5 trillion, representing some 30% of global trade. While the bloc has a substantial export surplus in goods, it says that is partly offset by the U.S. surplus in the trade of services.
The EU says that trade in goods reached 851 billion euros ($878 billion) in 2023, with a trade surplus of 156 billion euros ($161 billion) for the EU. Trade in services was worth 688 billion euros ($710 billion) with a trade deficit of 104 billion euros ($107 billion) for the EU.
