EU and U.S. Trade Tensions Escalate as New Tariffs Take Effect

The U.S. imposes sweeping tariffs on steel and aluminum imports, prompting swift retaliatory measures from the European Union targeting key American products.

The United States has implemented a 25% tariff on all steel and aluminum imports, reversing exemptions previously in place under prior agreements.
The European Union responded by reinstating tariffs on American products, including whiskey, motorcycles, and jeans, with additional measures targeting U.S. agricultural and industrial goods planned for April.
Trump's tariffs are justified by claims of national security concerns, but EU officials argue they violate WTO rules and harm global trade relations.
Economic analyses suggest limited direct impact on the EU's GDP but warn of price increases, disrupted supply chains, and potential job losses on both sides of the Atlantic.
Further escalation looms, with Trump threatening additional tariffs on European cars and other goods, while the EU prepares broader countermeasures if negotiations fail.