<h6><strong>Julio García</strong></h6> <h4><strong>The EU responded this Wednesday to the implementation of the "unjustified" 25% US tariffs on European steel and aluminum with compensatory levies on US products worth up to €26 billion.</strong></h4> "The Commission regrets the US decision to impose such tariffs, considering them unjustified, disruptive to transatlantic trade, and harmful to businesses and consumers, as they often result in higher prices," the European Commission (EC) said in a statement. The EU government explained that its response to the 25% US tariffs on imports of these metals from around the world has been "carefully calibrated" and is based on a two-phased approach. On its social media platform, the Commission justifies this initiative as a defense of consumers and businesses. In a statement, Commission President Ursula von der Leyen indicated that the European countermeasures will be introduced in two stages: they will begin on April 1 and will fully enter into force on April 13, although, in the meantime, the EU executive will remain "open to negotiations." First, the Commission will allow the suspension of the current 2018 and 2020 countermeasures against the US to expire on April 1. These countermeasures target a range of US products in response to the economic damage caused to €8 billion worth of EU steel and aluminum exports. Second, in response to new US tariffs affecting more than €18 billion of EU exports, the Commission is proposing a package of new countermeasures on US exports that are scheduled to enter into force in mid-April, following consultations with Member States and stakeholders. Meanwhile, the Commission has assured that the EU remains willing to work with the US administration to find a negotiated solution, and has noted that the announced measures “can be revoked at any time if such a solution is found.” “Trade relations between the European Union and the United States are the largest in the world. They have brought prosperity and security to millions of people, and trade has created millions of jobs on both sides of the Atlantic,” recalled Ursula von der Leyen, who “deeply” regretted the US measure. She also emphasized that tariffs “are taxes, they are bad for businesses and even worse for consumers,” and stressed that they “disrupt supply chains and bring uncertainty to the economy.” “Jobs are at stake. Prices will rise. In Europe and in the United States,” she warned. Thus, she emphasized that the EU “must act to protect consumers and businesses,” and that the countermeasures decided on this Wednesday are “strong but proportionate.” “We firmly believe that, in a world plagued by geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs. We are ready to engage in meaningful dialogue,” continued von der Leyen, who called on European Trade Commissioner Maros Sefcovic to “resume his talks to explore better solutions with the US.” <h5><strong>Sefcovic</strong></h5> For his part, Sefcovic lamented that “the current US tariffs are taking us down the wrong path, and the reasons are multiple. The EU-US trade relationship is well balanced and very profitable for both parties. In the steel and aluminum sectors, in particular, we share some of the challenges—for example, global overcapacity driven by non-trade practices—and the European Union is part of the solution, not the problem.” “The US administration has chosen to pursue a damaging course of unjustified tariffs, which leaves us with no choice but to respond, and that is exactly what we are doing,” he emphasized. The Trade Commissioner then explained that, starting in April, “we will automatically reinstate our currently suspended rebalancing measures from 2018 and 2020, effectively targeting €4.5 billion worth of US goods exported to us.” "Second, the Commission is taking decisive action to approve a package of additional countermeasures that will apply to €18 billion of US exports to the EU," he added. Sefcovic concluded that "the goal is to counteract the increase in trade value affected by US tariffs, while minimizing the impact on European businesses and consumers. However, the disruption caused by the tariffs is avoidable if the US government accepts our help and works with us to reach an agreement."
