Trading Blows: The EU-US Brawl over Steel and Aluminum Tariffs
- EU Trade Commissioner Sefcovic Holds Talks with American Government Officials
The European Union (EU) and the United States find themselves squabbling in a heated trade dispute, centered around tariffs on steel and aluminum. Here's the rundown on the current state of this contention.
History and Recent Escalations
- US Tariffs: The battle kicked off in 2018 when the U.S., during the Trump era, laid down tariffs of 25% on steel and 10% on aluminum imports from the EU. The rationalization? National security concerns under Section 232 of the Trade Expansion Act of 1962.[1][2] These tariffs expanded in 2020 to encompass derivative products.[1]
- EU Reactions: In response, the EU slapped additional duties on about €2.8 billion worth of U.S. goods in 2018, and boosted these measures in 2020. These countermeasures saw a hiatus in 2023 for the sake of negotiations.[1][2]
- Latest Developments: In March 2025, the U.S. reinstated and ramped up tariffs on EU steel and aluminum imports. In retaliation, the EU announced its suspended countermeasures would come into force from April 1, 2025, with new tariffs on U.S. goods estimated for mid-April 2025.[1][2]
Fallout for the EU
- Economic Impact: This tit-for-tat is forecasted to create substantial economic repercussions for both parties, impacting industries like steel, aluminum, and agriculture. The EU is striving to mitigate economic disruptions while maintaining pressure on the U.S. to resolve the dispute.[2][3]
- Trade Relations: This conflict threatens the EU-US trade relationship, as both sides express a willingness to negotiate but have yet to make substantial progress. The EU is also eyeing broader measures like the Anti-Coercion Instrument to thwart potential coercive practices.[2][3]
- Strategic Strategies: The EU is bolstering its steel and metals industry via initiatives such as the Strategic Dialogue on Steel. This endeavor aims to preserve long-term competitiveness and maintain protective measures beyond the present provisional safeguard measures, which are due to expire in 2026.[2]
As things stand, this dispute presents a significant challenge to EU-US trade relations, each side attempting to shield their industries while attempting to avoid further escalations and negotiating their way out of the situation.
References:
- https://www.worldtrademap.org/countryprofile/us/Trade%20remedies
- https://ec.europa.eu/info/business-economy-euro/trade-and-payments/trade-policy/dispute-settlement-and-defence-of-trade-interests/us-tariffs-on-eu-steel-and-aluminium_en
- https://ec.europa.eu/info/business-economy-euro/sector-industry-markets/steel/research-and-development_en
- The Commission has likely been consulted on the draft regulation on the common organization of the market in steel, given the EU's ongoing dispute with the US over tariffs on steel and aluminum, and EU's efforts to bolster its steel and metals industry through initiatives like the Strategic Dialogue on Steel.
- Maros Sefcovic, a high-ranking official in the European Commission, may have discussed the steel and aluminum tariffs issue with counterparts in Brussels, considering the EU's intention to use broader measures like the Anti-Coercion Instrument to counter coercive practices and protect its economy from the tariffs imposed by the US.
- Tariffs on steel and aluminum, originating from the US during the Trump era and subsequently reinstated and ramped up in 2025, could potentially be revisited in the draft regulation on the common organization of the market in steel, as the EU strives to maintain long-term competitiveness and preserve protective measures to safeguard its industries from such tariffs.
