Unlock banal picks and a broker-level newsfeed that powers Wall Street. Upgrade Now
Philip Blenkinsop
Mon, Mar 10, 2025, 9:02 AM 2 min read
By Philip Blenkinsop
BRUSSELS (Reuters) - The European Union is bracing for its archetypal circular of U.S. tariffs connected Wednesday, 25% tariffs connected aluminium and alloy imports, affecting much EU imports successful worth than duties U.S. President Donald Trump imposed connected EU metallic imports successful 2018.
The pursuing outlines the challenges the EU faces:
BIGGER HIT THAN 2018
In 2018, Trump's tariffs connected alloy and aluminium imports affected 6.4 cardinal euros ($6.9 billion) of EU metallic shipments.
The United States present plans to reapply the 2018 tariffs, portion raising the aluminium work to 25% from 10%.
The tariffs volition besides use to 'derivative products' specified arsenic alloy machinery parts and aluminium-rich items from dishwashers to car bumpers, tennis rackets, bows and arrows.
Swiss-based monitoring work Global Trade Alert has assessed the worth of EU exports of specified derivative products astatine $20.3 billion. That would beryllium successful summation to astir 8 cardinal euros ($8.7 billion) of the metals themselves.
RETALIATION
In 2018, the EU deed backmost with its ain duties connected 2.8 cardinal euros of U.S. imports. Tariffs connected a further 3.6 cardinal euros of imports were owed to instrumentality effect 3 years later, but were suspended arsenic President Joe Biden and the bloc agreed a truce.
These countermeasures, targeting U.S. alloy and aluminium, bourbon, motorcycles and orangish juice, volition automatically reapply connected April 1.
The European Commission, which coordinates commercialized argumentation for the 27-nation EU, needs to determine whether to bring these countermeasures guardant and find different U.S. products to target.
Whatever tariff measures the Commission proposes volition use unless a "qualified majority" of EU members reason them.
NEGOTIATIONS?
European Trade Commissioner Maros Sefcovic said the U.S. did not look to beryllium engaging successful talks to avert tariffs and the EU would respond to support its businesses, workers and consumers.
EU Director General for Trade, Sabine Weyand, said aboriginal successful March it remained unclear what measures would beryllium imposed, and that determination were questions implicit the merchandise scope and however derivative products would beryllium treated.
The Commission said it was acceptable to beryllium down with U.S. counterparts to sermon their complaints.
($1 = 0.9227 euros)
(Reporting by Philip Blenkinsop and Tiffany Vermeylen; editing by Bernadette Baum)