The European Union (EU) will impose counter-tariffs on 26 billion euros ($28 billion) worth of US goods from next month, the European Commission said on Wednesday, ramping up a global trade war in response to blanket US tariffs on steel and aluminium.
President Donald Trump’s increased tariffs of 25 percent on all steel and aluminium imports took effect on Wednesday as prior exemptions, duty-free quotas and product exclusions expired.
Trump hopes the tariffs will boost US steel and aluminium production but critics say it will raise prices for US consumers and dent economic growth.
The American Iron and Steel Institute (AISI), a group representing US steelmakers, welcomed the tariffs saying they will create jobs and boost domestic steel manufacturing.
The European Commission said it will end the current suspension of tariffs on US products on April 1 and will also put forward a new package of countermeasures on US goods by mid-April.
We regret the unjustified US 25% tariff on steel and aluminium imports.
The EU will protect its consumers and businesses.
We are launching swift, proportionate countermeasures worth up to €26 billion, matching the economic impact of the US tariffs.
More about our response ↓
— European Commission (@EU_Commission) March 12, 2025
The suspended tariffs apply to products ranging from boats to bourbon to motorbikes, and the EU said it would now start a two-week consultation to pick other product categories.
The new measures will target around 18 billion euros in goods, with the overall objective to ensure that the total value of the EU measures corresponds to the increased value of trade impacted by the new US tariffs, the EU said.
The proposed target products include industrial and agricultural products, such as steel and aluminium, textiles, home appliances, plastics, poultry, beef, eggs, dairy, sugar and vegetables.
“Our countermeasures will be introduced in two steps. Starting with 1 April and fully in place as of 13 April,” Ursula von der Leyen, the president of the European Commission, said in a statement.
“We are ready to engage in meaningful dialogue. I have entrusted Trade Commissioner Maros Sefcovic to resume his talks to explore better solutions with the U.S.,” von der Leyen added.
Experts downplay the impact of US tariffs on Greece
Economists in Greece argue that President Trump’s tariffs on the EU will have little impact on the Greek economy, as it is not significantly reliant on exports to the US.
According to research published in the bulletin of the Eurobank Analysis and Research Group, in the first 11 months of 2024, the US’s weight on the total of Greek exports of goods was around 4.8 percent, or 2.2 billion at current prices. In the same period, the value of Greek imports of goods from the US amounted to €2 billion. Therefore, the trade balance between Greece and the US was in surplus at €200 million.
The research points out, however, that in addition to direct effects, the effects on the Greek economy from possible protectionist policies on the part of the US may also be indirect.
Indirect effects may come from Greece’s trade ties with the European Union of 27 member states, as around 20 percent of EU-27 exports of goods are purchased by US entities.
A possible increase in tariffs on products imported by the US from the EU27 could negatively affect a portion of Greek exports of goods to the US, Eurobank notes.
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