U.S. tariffs and EU countermeasures

We live in turbulent times. Geopolitical uncertainties and geoeconomic turbulences are on the rise. The trade relations between the European Union and the United States are “cooling off”. Higher U.S. tariffs against steel and aluminium products provoked countermeasures from the European Union.

We give a short overview.

U.S. tariffs on steel and aluminium

As of 12 March, 2025, a 25% tariff rate is imposed on imports of steel and aluminium into the United States. Further, this higher tariff is applied to a wider range of products (going beyond the “June 2018 section 232” products and extending to derivative products and products that are only partly made of steel or aluminium).

Imports from the European Union, previously benefitting from a friendlier treatment by the Biden administration, are equally affected.

President Trump ordered these trade measures already on 10 February, 2025 (see Proclamation 10896: "Adjusting Imports of Steel Into the United States" and Proclamation 10895 "Adjusting Imports of Aluminum Into the United States"). They have in the meantime come into effect.

The European Union responded quickly:

Countermeasures of the European Union

On 12 March, 2025 the European Union announced its countermeasures. Designed to respond strongly but proportionally, they aim at matching the economic scope of the U.S. tariffs on European steel and aluminium exports worth USD 28 billion while minimising the impact on the European businesses, workers and consumers.

The countermeasures concern two steps:

1) In 2018 and 2020, the European Union already imposed so-called “rebalancing measures” against U.S. goods. These measures were suspended later, but will come back automatically on 1 April, 2025. For the first time, these rebalancing measures will be implemented in full.

2) The European Union already kicked-off a process to impose additional countermeasures on US exports to the European Union worth approx. EUR 18 billion. The process evolves as follows:

• stakeholder consultation on the proposed target products
• consolidation and assessment of stakeholder input
• finalization of the draft implementing act, consultation with the EU member states, and adoption.

The additional countermeasures are planned to come into force in mid-April 2025.

According to Regulation (EU) No 654/2014 the European Union may exercise its rights to suspend or withdraw concessions or other obligations under international trade agreements, with the intention of, amongst others, rebalancing concessions or other obligations in the trade relations with third countries, when the treatment accorded to goods or services from the Union is altered in a way that affects the Union’s interests.

Outlook

Trade relations between the United States and the European Union have had their ups and downs. A negative example is the long-lasting aircraft dispute (Boeing, Airbus) that was only settled a few years ago. Already in the past, deals have been concluded to ease the tensions. On 12 March, 2025 the European Union has again sent signals to Washington to resume talks “to explore better solutions”.

We will see how this topic evolves.

Please note: This blog is for general information purposes only and in no way constitutes legal advice from Binder Grösswang Rechtsanwälte GmbH. The blog cannot replace individual legal advice. Binder Grösswang Rechtsanwälte GmbH accepts no liability of any kind for the content and accuracy of the blog.