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Trade Trends News
11-04-2025
Starting next Tuesday, the European Union will implement retaliatory tariffs on U.S. imports worth €21 billion (approximately $23 billion USD) in response to U.S. President Donald Trump's tariffs on steel and aluminum.
Under Trump's policy, the 27 EU member states will impose a 25% import tariff on steel, aluminum, and automobiles, along with a broader 20% tariff on nearly all other goods, aiming to target countries he accuses of imposing high barriers on American imports.
The retaliatory measures announced so far are a direct response to the metal tariffs implemented by the U.S. on March 12, and were approved by EU member states on Wednesday. The EU is still assessing how to respond to tariffs on automobiles and broader "reciprocal" duties.
The EU plans to implement the tariffs in three phases, with the majority of them taking effect in May.
In the first phase, the EU will target €3.9 billion worth of U.S. goods, including steel and aluminum, corn, rice, motorcycles, jet skis, dishwashers, washing machines, and orange juice.
Most of these tariffs are a reapplication of duties the EU imposed back in 2018, when Trump first ordered tariffs on European steel and aluminum. Those tariffs were suspended under a truce negotiated during President Joe Biden's administration.
Notably, American whiskey has been excluded this time, as some countries feared U.S. retaliation against European wine exports.
Most of the affected goods will face a 25% tariff, though certain products like diamonds will be subject to a lower 10% rate.
Given that the new round of U.S. metal tariffs covers a broader range of steel and aluminum products than those imposed in 2018, the European Commission — which coordinates EU trade policy — has compiled a larger list of U.S. goods for potential retaliation. The original list covered €21 billion worth of goods, though it was later trimmed to €17 billion after removing dairy, spirits, and wine.
Starting May 16, an additional 25% tariff will be imposed on €13.5 billion worth of U.S. goods, including poultry, beef, fruits, grains such as wheat, barley, and oats, vegetable oils, timber, plastics, carpets, clothing, glassware, tools, chewing gum, dental floss, lawnmowers, vacuum cleaners, and toilet paper.
China will also impose tariffs on an additional €3.5 billion worth of U.S. goods, including soybeans and almonds.
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