'We will not shy away': EU reveals countermeasures to Trump's tariffs

The European Union has unveiled countermeasures in response to the Trump administration's decision to impose a blanket 25 percent tariff on steel and aluminum imports.

The EU has promised a proportionate response and will begin adding duties on $28 billion worth of U.S. goods from next month. 

"This matches the economic scope of the U.S. tariffs," said European Commission President Ursula von der Leyen. "Our countermeasures will be introduced in two steps, starting with 1 April and fully in place as of 13 April."

The EU and U.S. have the largest bilateral trade relationship in the world. According to figures from 2023, the transatlantic trade in goods and services was worth close to $2 trillion. That equates to nearly 30 percent of global trade and 43 percent of global gross domestic product. 

U.S. President Donald Trump says the trade relationship with the EU is unfair and has argued that tariffs will be an effective tool to balance ties with Europe and a number of Washington's trade partners.

"The tariffs are going to be throwing off a lot of money to this country," Trump said. "And we've been ripped off for years by other countries for many, many decades."

The European Commission says that tariffs are a tax that are bad for businesses and even worse for consumers on both sides of the Atlantic. 

"These tariffs are disrupting supply chains. They bring uncertainty for the economy," Von der Leyen said. "Jobs are at stake. Prices will go up. In Europe and in the United States. The European Union must act to protect consumers and business."

The EU has promised a proportional response to Washington's duties. On April 1 the EU will reinstate duties that were put in place during Trump's first term in office. These duties will be worth nearly $9 billion and will target U.S. items such as bourbon whiskey and Harley Davidson motorcycles. 

On April 13 the EU is set to unveil a broader tranche of duties on industrial goods and agricultural products worth nearly $20 billion. 

"While the EU will continue to engage towards finding win-win deals, we have made clear from the start that unjustified tariffs on our exports will not go unanswered, and we will not shy away from protecting our legitimate economic interests," said Maroš Šefčovič, EU Commissioner for Trade and Economic Security.

Limiting repercussions

Senior EU officials say the duties will seek to have a meaningful impact on the U.S. while limiting the repercussions for consumers in Europe. 

The EU says it will target goods such as meat and soybeans that are produced in U.S. states like Nebraska and Kansas that voted overwhelmingly for Trump in last year's election. Commission officials say these products can easily be sourced in other markets, such as Brazil, to mitigate the impact on EU citizens. 

The EU says it's taking steps to boost its competitiveness and ramp up its industrial production. Experts say the need for strong action has been amplified by the U.S. tariff decision. 

"The U.S. tariffs on steel and aluminum pose a significant challenge to European industry and workers, disrupting supply chains and creating uncertainty," said Judith Kirton-Darling, General Secretary of the trade union industriAll Europe. 

"This situation underscores the importance of Europe taking charge of its industrial future. Strategic autonomy and economic security must be priorities, not just aspirations," Kirton-Darling told CGTN. 

"The EU needs a strong, coordinated response to protect jobs, support our industries, and strengthen our manufacturing base. Investing in European industry and supporting its workers is essential to securing our long-term stability."

The EU's countermeasures are set to take effect in several weeks' time and the European Commission says it is ready to negotiate or retaliate. This period of time will also provide an opportunity for European member states to have a say on what exactly the EU's countermeasures should look like.