In Brussels, it was shortly past 06:00 on Wednesday. However, at midnight in Washington D.C., President Donald Trump’s 25% tariffs on steel and aluminum came into force for significant U.S. trade counterparts.
The European Union responded within under 10 minutes.
“Tariffs are taxes. They are bad for business, and worse for consumers,” said European Commission President Ursula von der Leyen.
The EU’s initial countermeasures will take effect on US products on 1 April,
from denim pants and motorcycles to peanut butter and whiskey
, similar to how they were during the Trump administration’s initial tariffs in 2018 and 2020.
But there will be more to come in mid-April. A whole swathe of textiles, home appliances, food and agricultural products could be included, depending on a two-week consultation with stakeholders.
A document spanning nearly 100 pages is circulating which includes an extensive range of products such as meats, dairy items, fruits, wines, and liquors, along with bathroom fixtures like toilet seats, various materials including wood, clothing such as coats and swimsuits, sleepwear like nightdresses, footwear, lighting fixtures such as chandeliers, and gardening tools like lawnmowers.
For shoppers, higher costs are anticipated on European grocery store aisles, particularly for goods from America. However, companies and certain sectors face significant risks, notably the steel industry.
Dirk Jandura, who leads Germany’s BGA federation covering wholesale, foreign trade, and services, cautioned that German consumers may need to spend more from their wallets to purchase American goods at grocery stores.
The items most susceptible to impact were orange juice, bourbon, and peanut butter. He stated, “With such slim profit margins in trading, these companies cannot shoulder this additional cost.”
Altogether, the EU plans to target $26 billion (£22 billion) worth of American imports.
“We won’t delve into speculations except to mention that we have meticulously prepared for all these scenarios,” stated EU spokesperson Olof Gill.
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António Costa, who serves as the EU’s Council President, urged the United States to reduce tensions, though there were few indications of this happening on Wednesday, as Trump pledged to retaliate against the EU’s counteractions.
“We’ve been abused for a long time and we will be abused no longer,” he said.
In Austria as well, there were concerns about the escalation.
The United States stands as the second largest importer of Austrian goods following Germany and is also the top destination for German exports,” stated Christoph Neumayer, who leads the Federation of Austrian Industries. He further emphasized that “it is crucial for Europe to act collectively and with determination.
An EU representative noted that items like soybeans and orange juice might readily be obtained from Brazil or Argentina, implying that this wouldn’t significantly impact consumers.
There was an indication that some U.S. exports aimed at were from states governed by Republicans: soybeans originating from Louisiana or meats from Nebraska and Kansas.
A significant volume of U.S. exports reach the European Union through the Port of Rotterdam in the Netherlands or the Port of Antwerp in Belgium.
The Dutch Minister of Economic Affairs, Dirk Beljaarts, stated that no one would gain from a “trade war,” though he remained optimistic about its limited effect on his nation’s economy. He emphasized that such tensions would primarily affect businesses and consumers, with American consumers being disproportionately impacted.
A sector that will face significant challenges on both sides of the Atlantic is beverages.
Pauline Bastidon from Spirits Europe mentioned that manufacturers in both the EU and the US were unified, highlighting the threats faced by European firms producing American spirits as well as by US entities significantly involved in the European market.
Chris Swonger from the US Distilled Spirits Council stated that over the past three years since the European Union lifted its previous 25% tariff on American whiskey, producers in the United States have “strived diligently to restore their strong position within what is currently our biggest export marketplace.”
The reintroduction of tariffs starting from 1 April was “extremely disheartening.”
He advocated for reverting to “zero-for-zero” tariffs.
.
For French cognac makers, the possibility of a 25% tariff imposed by the U.S. on imports presents a significant challenge since much of their production is destined for exports, whether to the United States or China.
French producers have already felt the impact of Chinese measures.
that have imposed significant taxes on cognac.
Bastien Brusaferro from the general winegrowers’ union stated to France Info that morale is at an all-time low.
In the Charente region alone, thousands of jobs are jeopardized, he states: “Cognac is a drink designed primarily for international markets.””
The head of the European Steel Association, Henrik Adam, also issued a serious warning.
“President Trump’s ‘America First’ policy risks being the last straw for the European steel sector,” he cautioned.
In 2018, Trump’s initial tariffs on European steel led to a decline of over one million tonnes in EU steel exports to the United States. For every three tonnes of steel that failed to reach the U.S., approximately two-thirds ended up being redirected to the EU instead.
These newly implemented measures by Trump are broader in scope; consequently, the effect of the US tariffs is expected to be much more significant.
