The EU has responded to the US tariffs on steel and aluminum by implementing retaliatory tariffs targeting US Republican-leaning states. The EU has imposed tariffs on products from states that voted for Donald Trump, such as soybeans from Louisiana, beef and poultry from Nebraska and Arkansas, and wood products from Georgia and Virginia. The EU aims to strategically hit the heartland of the US to exert pressure on the Trump administration.
These retaliatory measures were initiated in response to the US imposing 25% tariffs on aluminum and steel imports. The EU’s countermeasures could potentially impact up to €26 billion worth of US products. The list of products targeted by the EU includes industrial items like steel and aluminum products, textiles, leather goods, home appliances, house tools, plastics, and wood products. The EU has consulted with industries and member states before implementing these measures.
The US had previously imposed tariffs on steel and aluminum in 2018, which were suspended under the Biden administration but are set to come back into effect on April 1, 2022. The EU has responded by targeting a wider range of European products compared to the first trade war, including steel and aluminum derivatives. The EU official stated that the US tariffs do not take into account the specific needs of the US economy, potentially affecting critical supply chains.
The new US tariffs on steel and aluminum will impact all imports into the US, not just those from Europe. While the EU has not coordinated its response with allies like Canada and the UK, discussions are ongoing behind the scenes. The EU is also preparing for possible imports from third countries that may be diverted from the US due to the tariffs. The EU already faces an oversupply of steel, particularly from China, prompting the consideration of additional measures to address any new surplus.
Overall, the EU’s response to US tariffs on steel and aluminum is strategic and targeted at hitting key Republican-leaning states. By imposing tariffs on products from states that supported Trump, the EU aims to apply pressure on the US administration. The EU has consulted with industries and member states before implementing these retaliatory measures, which could potentially impact a wide range of US products. The EU is also preparing for imports from third countries that may be redirected from the US due to the tariffs, as well as considering additional measures to address oversupply issues.
