US-EUROPE TRADE TENSIONS: STEEL AND ALUMINUM ON THE FRONT LINE

Since March 12, 2025, the United States has imposed additional customs duties of 25% on European steel and aluminum, affecting EU exports worth 26 billion euros. The decision, deemed unjustified by the European Commission, revives a trade dispute initiated in 2018 under the Trump administration, when similar taxes were applied to €8 billion worth of European metal exports. Faced with this offensive, the European Union immediately announced countermeasures, aimed at restoring economic balance and protecting its metal and manufacturing industries.

THE EUROPEAN RESPONSE: BETWEEN REACTIVATED MEASURES AND NEW SANCTIONS

The EU’s response is based on a two-phase strategy:
First, the reinstatement of the retaliatory taxes of 2018 and 2020: from April 1, 2025, the EU is reinstating surtaxes on a series of iconic American products, such as bourbon, Harley-Davidson motorcycles, boats and certain textiles. These measures, initially suspended in the hope of a transatlantic agreement, concern a volume of imports worth 3.6 billion euros.

In a second phase, new taxes will apply to some 18 billion euros worth of American products: a consultation has been launched with European stakeholders to refine the list of products targeted. These include household appliances, household tools, plastics, wood, as well as foodstuffs such as poultry, beef, seafood, sugar and dairy products. These sanctions will come into force in mid-April.
With this retaliation, the European Commission aims to balance the economic impact of US surcharges, while leaving the door open to a negotiated solution.

WHAT ARE THE IMPACTS ON INTERNATIONAL TRADE?

These protectionist measures are likely to exacerbate trade tensions and affect many industrial sectors. The taxation of metals could increase production costs for companies on both sides of the Atlantic, leading to higher prices for consumers and the disruption of supply chains.

However, the EU says it is prepared to suspend sanctions in the event of an agreement with Washington. Dialogue is therefore still possible to avoid an escalation that could slow economic recovery and have a lasting impact on transatlantic trade.