The European Union has spent months preparing for painful tariffs from the United States, its most important trading partner. On Wednesday, as American steel and aluminum tariffs of 25 percent took effect, European officials began to respond. The United States buys the most steel and aluminum from countries including Canada, Brazil, and Mexico, but Germany is a notable steel producer. The tariffs may also affect products that contain steel and aluminum, such as cookware and window frames, and may hit around €26 billion worth of the bloc’s exports.

The European Union’s response will come in two parts. It had increased tariffs on a range of goods in retaliation to US measures during President Trump’s first term, but they were suspended under the Biden administration. The suspension will lapse on April 1, meaning that higher tariffs would take effect on billions worth of products that include boats, bourbon, and motorcycles. The bloc’s second step would be to place tariffs on €18 billion worth of additional products. Europe is preparing for an unfolding trade conflict, as Mr. Trump has said that he would set wide-ranging tariffs on American trading partners globally as soon as April 2, with levies on cars in particular potentially being 25 percent, a figure that would be painful for German and Italian automakers.

The European Union does not want to escalate the trade war, but the Trump administration has been reluctant to negotiate, pushing European policymakers to adopt a more aggressive stance. Businesses across the bloc are facing the prospect of worsening trade conditions, which could hurt their overseas business. It is not clear what Mr. Trump’s goals are or which ones will ultimately be

Source: https://www.nytimes.com/2025/03/12/world/europe/eu-us-trump-tariffs.html