EU Threatens Retaliation if US Imposes Tariffs on European Goods
The European Union is prepared to impose counter-tariffs on American goods and services if the incoming US President, Donald Trump, decides to impose tariffs on European goods after his inauguration, according to Bernd Lange, the chair of the European Parliament’s trade committee. “The EU is prepared to impose counter-tariffs on American goods and services” Lange told the Spiegel. “The impact would be felt in the United States.”
Before taking such a step, Brussels wants to negotiate a trade deal with the US, Lange added. “I don’t give up hope that the Republicans in Congress will turn against tariffs on European goods” he said.
The EU is also preparing for the scenario in which the US imposes tariffs on China. “If, as a result of such a decision, China’s exports to Europe increase, we will protect the European industry” Lange said. The EU Parliamentarian referred to so-called safeguards, which Brussels used to protect the steel industry during Trump’s first term. Under the safeguards, only a certain amount of steel could be imported into the EU without a tariff. Any steel exceeding that amount was subject to a 25% tariff. “We would have that again if there’s a renewed trade war between the US and China” Lange said.
Kerstin Rippel, the head of the steel industry association, is calling for the safeguards for the steel industry to be maintained, as they are set to expire in 2026 under current law. “The change in the White House will have far-reaching consequences for the steel industry in the EU” she told the Spiegel. “It’s crucial for the federal government and the EU to make a clear commitment to keeping basic industries like steel in the country.”
Trump had threatened to impose tariffs of 10 to 20% on foreign goods during his campaign. He had also announced that Chinese imports could be subject to import duties of 60%.