Wednesday, April 23, 2025

USA-China Tensions Transform Global Market

After the U.S. elections, relations between the...

EU Imposes €26 Billion in Tariffs on US Goods in Response to American Trade Measures

ECOLOGYEU Imposes €26 Billion in Tariffs on US Goods in Response to American Trade Measures

The European Commission has announced the imposition of tariffs on American products in response to the implementation of U.S. tariffs on steel and aluminum. The EU tariffs, valued at 26 billion PLN, will take effect on April 1 and will be fully implemented by April 13. Donald Trump has already signaled that he will respond. “We are entering a stage of trade war between the European Union and the United States, and we will certainly witness many such retaliatory measures from both sides,” said MEP Anna Bryłka.

“We have been waiting a long time for a decision from the European Commission, as both the Commission and Commissioner Maros Sefcovic had indicated that the EU would retaliate against the U.S. for imposing tariffs on steel and aluminum imports from the European Union. Now, we have finally seen action,” said Anna Bryłka, a Member of the European Parliament from the Confederation party, in an interview with the Newseria agency.

On March 12, the U.S. introduced a 25% tariff on steel and aluminum imports. In response, the European Commission announced the imposition of retaliatory tariffs on U.S. goods worth 26 billion euros. On April 1, the suspension of tariffs imposed by the EU in response to U.S. tariffs during Trump’s first presidency in 2018 and 2020 will expire. At that time, the EU imposed tariffs on American goods worth 8 billion euros. According to the European Commission, this will not be sufficient, so it plans to introduce additional tariffs worth 18 billion euros. Goods that could be subject to these tariffs include steel and aluminum products, poultry, beef, nuts, and sugar. Donald Trump has already promised to respond.

“It appears that there are still many goods and services that could be subject to tariffs. The European Commission is preparing to further influence trade through retaliatory tariffs. The reality is that we are entering a stage of trade war between the European Union and the United States, and we will undoubtedly see many retaliatory measures from both sides, given the EU’s decision,” commented MEP Bryłka.

The European Commission has announced that the final list of goods subject to EU tariffs will be confirmed after consultations with EU member states. The aim is to select products that will ensure an effective and proportional response while minimizing disruptions for European businesses and consumers.

KPMG reminds us that Donald Trump has also announced the introduction of reciprocal tariffs that would affect, among others, the European Union. According to the U.S. president, the European VAT tax is just as significant a trade barrier as tariffs, so it should also be considered when setting reciprocal tariff rates. In previous statements, Trump considered imposing 25% tariffs on goods in the automotive, pharmaceutical, semiconductor, and timber sectors. The introduction of such restrictions would be a significant blow to EU exporters, including those in Poland.

“This will weaken both sides. Every introduction of tariffs and tariff or non-tariff restrictions, as the EU or the U.S. might impose additional trade restrictions, simply leads to higher prices,” explained Anna Bryłka.

The Tax Foundation estimates that tariffs imposed by President Trump during the 2018–2019 trade war and maintained by Biden resulted in a 0.2% reduction in GDP and a loss of 142,000 jobs. Academic and government studies indicate that Trump’s tariffs led to higher prices, decreased production, and reduced employment, negatively impacting the U.S. economy. This time, the effects could be even more severe, also affecting the EU.

Poland is not expected to be significantly affected by the steel and aluminum tariffs. According to the Polish Economic Institute, the total value of Poland’s exports of these products to the U.S. was 207 million euros in 2023, with a similar result recorded in 2024. However, Poland is highly dependent on European supply chains. Around 83% of Poland’s exported steel and aluminum subject to tariffs is destined for EU markets. In the long run, additional U.S. tariffs, for example, on the automotive sector, will have a greater impact. At the same time, the EU must be prepared for the fact that other countries affected by U.S. tariffs on steel and aluminum may seek to export more products to the European market.

“From the perspective of different countries, the impact will vary within the European Union because each country has different trade relations. Some EU countries will be more affected than others. In Poland’s case, the impact will be smaller because our trade with the U.S. is not as significant, but other European countries will feel the effects much more strongly, and the U.S. itself will also experience consequences,” concluded the MEP from the Confederation party.

Check out our other content
Related Articles
The Latest Articles