EU wields ‘sledgehammer’ against Trump tariffs

BRUSSELS — The EU hit back hard as U.S. President Donald Trump imposed 25 percent global steel and aluminum tariffs on Wednesday, announcing a two-stage retaliation against €26 billion in American exports that far exceeded a trade fight that blew up in his first term.

The European Commission said it would, from April 1, reimpose tariffs in response to €8 billion in U.S. tariffs — including on iconic American products such as Harley-Davidson motorcycles, bourbon and jeans. And, from mid-April, it will set further countermeasures over €18 billion in new U.S. tariffs, subject to the approval of EU member states.

“We deeply regret this measure,” European Commission President Ursula von der Leyen said in an early-morning statement.

“Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy. 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.”

Speaking before the announcement, one European steel industry representative said that Brussels would “go full sledgehammer because they are so fed up with Trump.”

The 27-nation bloc — a common market spanning 450 million people — wants to send an unmistakable message that the EU is serious about defending its economic interests should Trump launch a full-scale trade war.

The $1.7 trillion transatlantic trade relationship has been pivotal to the West’s postwar prosperity. But Trump, angered by the persistent U.S. trade deficit in goods, sees tariffs as a way to force businesses to bring industrial investment and jobs back to the United States.

The U.S. levies on steel and aluminum would hit Canada and Mexico the hardest — but the EU, as the No. 3 supplier of steel to America, would not survive unscathed. Brussels worries that further “reciprocal” tariffs threatened by Trump would, if implemented, hit exports of automobiles, pharmaceuticals and food.

The Commission left the door open to a deal with Trump, saying it “remains ready to work with the U.S. administration to find a negotiated solution” and adding that its measures “can be reversed at any time should such a solution be found.”

Early start

The European Commission, the bloc’s executive, will brief member countries at breakfast time on Wednesday — just a few hours after the U.S. tariffs kicked in at one minute past midnight in Washington, or 5.01 a.m. Brussels time.

In the weeks since Trump returned to the White House and started announcing tariffs, the EU has been vocal about being ready to hit back against “unjustified tariffs.” On Monday, Trade Commissioner Maroš Šefčovič said the bloc is ready “to protect its businesses, workers and consumers.”

“We can’t rely on the U.S. anymore — it’s a new reality. So we have to be tough hitting back, that’s the only medicine,” one EU diplomat said.

Šefčovič visited Washington last month in an attempt to initiate a dialogue on averting a trade war, only to conclude that the Trump administration was not interested. “In the end, one hand cannot clap,” he said on Monday.

The United Kingdom, meanwhile, is keeping a low profile. “We’re not going to have a kneejerk reaction,” said an official from the Department for Business and Trade, pointing out that No. 10 is emphasizing the U.K. will “continue to take a cool-headed approach” to tariffs and to Trump’s antagonistic trade policy.

A bigger hit

EU diplomats, along with the steel industry representative, had expected the EU’s response package to pack more of a wallop than the suspended tariffs dating back to 2018.

That’s because the Trump administration — based on his executive orders from mid-February — has changed its tariff practices substantially. Most importantly, aluminum will rise to 25 percent from 10 percent the last time.

The EU will also no longer enjoy the quotas extended under the former administration of President Joe Biden, which allowed it to export tariff-free to the U.S. Meanwhile, Trump is adding products made mostly with steel — such as bolts and radiators — to the list of goods subject to tariffs.

“I understand the countermeasures the EU is expected to reveal tomorrow need to be stronger than the currently suspended rebalancing tariffs,” said one diplomat, who like others interviewed for this story was granted anonymity to discuss the EU’s closely held trade deliberations.

Camille Gijs, Jakob Weizman, Graham Lanktree and Giovanna Coi contributed reporting. This story has been updated.