EU prepares countermeasures against US tariffs on steel
- The EU is finalizing a list of countermeasures due to unexpected U.S. tariffs on steel.
- Olof Gill, spokesperson for the European Commission, confirmed that countermeasures might be enforced by July 14.
- If the ongoing negotiations fail, the EU is prepared to respond decisively against the U.S. tariffs.
In Barcelona, Spain, the European Union announced on Monday, following a surprising imposition of tariffs by the United States on steel, that it is developing countermeasures to respond to this unilateral action. This decision came as ongoing tariff negotiations between the EU and the U.S. were significantly disrupted, causing unrest in global markets. EU Commission President Ursula von der Leyen had previously discussed accelerating trade talks with U.S. President Donald Trump in the hopes of achieving a balanced outcome but the unexpected rise in tariffs added complexity to the situation. European Commission spokesperson Olof Gill indicated that if negotiations do not yield a satisfactory result, the EU is poised to impose countermeasures, including direct responses to the U.S.'s latest tariff announcement. The EU is working on an expanded list of such countermeasures that is set to take effect around July 14, marking the end of a 90-day pause designed to facilitate negotiations. During this period, U.S. President Donald Trump announced a 50% tariff on steel imports, which was viewed as a significant escalation in the ongoing trade tensions between the two economic powerhouses. The EU has emphasized the importance of reaching a trade deal to avoid further tariffs on imported goods, which could have dire consequences for both economies. In an effort to strengthen negotiations, officials suggested potential areas for compromise, such as increasing U.S. imports of liquefied natural gas and defense items, and reducing tariffs on automotive products. However, the EU remains resistant to demands to abolish the value added tax, akin to a sales tax, or to allow in American beef. While the EU proposed a 'zero for zero' outcome to eliminate tariffs on industrial goods, including cars, President Trump has thus far dismissed this offer. Nonetheless, EU officials reaffirm that their proposal remains on the table as they continue discussions to forge an agreement that mitigates the impact of tariffs and fosters mutual benefit in trade relations. The next round of talks is set to happen in a meeting in Paris, where the European Union's chief trade negotiator, Maroš Šefčovič, will meet with U.S. Trade Representative Jamieson Greer to further evaluate their positions against the backdrop of an escalating trade war.