25% US tariff on steel and aluminium take effect, EU delays retaliatory tariffs

25% US tariff on steel and aluminium take effect, EU delays retaliatory tariffs

The EU postpones its response to US tariffs on steel and aluminium to allow more time for discussions

by Manal Barakat, SeaNewsEditor


On 12 March 2025, the US enforced a 25% tariff on steel and aluminium imports from all countries, including European Union states.

 

Analysts estimate that the tariffs will affect EU exports worth €26 billion, approximately 5% of total EU exports to the US.

 

The EU first intended to respond to these tariffs by imposing its own levies, beginning on 1 April 2025, including a 50% tax on whiskey made in the US.

 

However, after Trump threatened the EU with a 200% tariff on European alcoholic beverages, the EU pushed back its retaliatory tariffs until mid-April.

 

A BBC report highlighted that leaders in France and Italy, two key wine-exporting countries, criticised the EU for escalating its response to Trump’s tariffs.

 

The postponement is seen as a step to allow more time for discussions with the US in hopes of finding a mutually beneficial resolution.

 

According to a DVZ report, if the EU retaliatory tariffs are imposed, they would impact several US products, including bourbon whiskey, game consoles, motorcycles, boats, and peanut butter. Some tariffs could be as high as 50%, says DVZ.

 

In addition, more countermeasures could target US agricultural items, such as vegetables, dairy products, meat, poultry, seafood, nuts, eggs, and sugar.

 

 

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Source: DVZ, BBC, PwC