EU member States Prepare to Counter US Steel and Aluminum Tariffs

European union member states are poised to vote on countermeasures proposed by the European Commission in response to the existing 25% tariffs imposed by the United States on steel and aluminum imports. The vote, scheduled for this afternoon in the commercial Barriers Regulation Committee, is widely expected to pass, paving the way for retaliatory tariffs on a range of American goods.

The Voting Process and Potential Roadblocks

The approval of the countermeasures requires a qualified majority. To block the measures, at least 14 member states would need to vote against them. Should this occur, the process would escalate to an appeal committee, requiring a reinforced qualified majority of 16 countries representing at least 65% of the EU population to overturn the EU’s response. this complex voting structure underscores the delicate balance of power and diverse economic interests within the European Union.

Targeting a Wide Array of American Products

The proposed countermeasures target approximately €21 billion worth of American products, spanning various sectors from agriculture to manufacturing. the implementation of these tariffs is planned in a phased approach.

• Phase 1: Tariffs on an extensive list of American products, effective from mid-April.
• Phase 2: Additional tariffs imposed from mid-May.
• Phase 3: Tariffs on almonds and American soybeans, scheduled for December.

Notably, after negotiations with member states, Bourbon, wine, and dairy products, initially considered for the first list, have been removed.

Escalating Trade Tensions: A Global Viewpoint

This vote coincides with the implementation of “reciprocal” tariffs announced earlier this month, which include punitive measures against China (up to 104%), the EU (20%), and additional taxes of up to 50% on goods from over fifty othre countries. This global trade landscape is becoming increasingly complex,with nations enacting protectionist measures and retaliatory tariffs.

Such as, the Peterson Institute for International Economics estimates that global trade disputes have already cost the world economy billions of dollars, impacting supply chains and consumer prices.

EU Prepares Further Action on Automobiles

The European Commission is also developing a separate set of measures in response to the US’s 25% tariffs on automobiles and what Washington terms “reciprocal” tariffs, which are now in effect. at the beginning of next week, such as the second phase of our response to US tariffs, this time about cars and ‘reciprocal’, we will basically present our plan in the same way we did with steel and aluminum, stated CE spokesman for commerce, Olof Gill.

High-Level Discussions and Industry Engagement

European Commission President Ursula von der Leyen is actively engaging with representatives from affected industries.Recent meetings include discussions with leaders from the steel and automotive sectors,and also the pharmaceutical industry. Today, she is scheduled to meet with Malte Lohan, Executive Director of Amcham EU, representing the US Chamber of Commerce in the European Union. These meetings highlight the EU’s commitment to understanding and addressing the concerns of businesses impacted by the ongoing trade disputes.