US tariffs: “We are united and ready to respond firmly”

Bernd Lange, chair of the European Parliament’s International Trade Committee, reacts to the US 25% tariff on all steel and aluminium entering the country, in place as of today, 12 March.

Mr Bernd LANGE (S&D, DE), Chair of the International Trade Committee (INTA) in the European Parliament, comments:

“Another week, another dose of self-inflicted tariff pain by the Trump administration. Tariffs are generally bad, but these tariffs are particularly bad: they target US trade partners, they are set arbitrarily, without legal and economic justifications, and they fail to address non-market overcapacity - the main issue steel and aluminium industry across the Atlantic is confronted with.

Our EU-US trade relationship was thriving, healthy, balanced, fair, and sustainable, but we were under no illusion that, after its North American allies, the US would go after us. We are united and ready to respond firmly, fairly and effectively. Trade is an exclusive competence of the Union and Parliament stands fully behind the Commission in its response.

We still believe there is ample room for a positive agenda. Together, we can help shape global standards, expand market access for our firms both reciprocally and globally, tackle global non-market overcapacity, decarbonize industries, address unfair trading practices, and reinvigorate a rules-based trading system. The choice is for the US to make: between further trade chaos and expanded business opportunities. Whatever the choice, the EU is ready.”

Background

In its presidential proclamations from 10 February, President Trump announced the reinstatement of a 25% tariff on steel from the EU, and the increase of the existing 10% tariff on aluminium to also reach 25%. The proclamations also eliminate all alternative agreements and terminate all general approved exclusions.

The original US steel and aluminium tariffs date back from 2018 when the US adopted a tariff increase on imports of certain steel and aluminium products (at rates of 25% and 10%, respectively) and with an unlimited duration. In June 2018, the EU adopted rebalancing measures in reaction to the tariffs. In October 2021, the EU and US agreed to start discussions on a Global Arrangement on Sustainable Steel and Aluminium and suspend steel and aluminium trade disputes.

The European Union and the United States have the largest bilateral trade and investment relationship and enjoy the most integrated economic relationship in the world. EU-US trade in goods and services reached €1.6 trillion in 2023. This means that every day, €4.4 billion worth of goods and services cross the Atlantic between the EU and the US.