The European Union has announced retaliatory trade measures against the United States following the Trump administration’s decision to increase tariffs on steel and aluminum imports to 25%. The EU’s response includes duties on U.S. industrial and agricultural products, impacting goods worth approximately $28 billion. This move by the EU comes amidst already strained transatlantic relations, with the U.S. warning Europe to take care of its own security.

European Commission President Ursula von der Leyen emphasized the EU’s openness to negotiation while highlighting the negative impact of tariffs on both economies. The retaliatory measures target not only steel and aluminum products but also textiles, home appliances, and agricultural goods like poultry, beef, and seafood. The EU aims to protect its interests while expressing regret over the disruptive nature of tariffs on businesses and consumers.

European steel companies are bracing for potential losses due to the impact on steel exports to the U.S., with estimates suggesting a significant decline in trade volume. The EU’s trade relationship with the U.S. plays a crucial role in global trade, with annual trade reaching billions of euros and a significant trade surplus in goods for the EU.

Meanwhile, the UK has chosen not to impose retaliatory measures on the U.S., emphasizing the importance of engaging with the U.S. to safeguard British business interests and negotiate economic agreements. The EU’s response to the U.S. tariffs involves a two-step approach, reintroducing “rebalancing measures” and additional duties on U.S. exports to the bloc.

Overall, the trade tensions between the EU and the U.S. underscore the complexities of transatlantic trade relations and the challenges posed by protectionist measures.