The European Commission is set to introduce countermeasures in response to US tariffs on aluminum and steel imports, with further responses to tariffs on cars and reciprocal tariffs under consideration. This decision follows the imposition of 25 percent tariffs on aluminum and steel imports into the US since March 12, and tariffs on cars and car parts since April 3.

US President Donald Trump announced reciprocal tariffs on April 2, with a minimum of 10 percent for all and higher tariffs for approximately 60 countries, effective from April 9. These include tariffs of 20 percent for the European Union, 34 percent for China, and 33 percent for Macedonia.

The Commission consulted with member states regarding countermeasures to the US tariffs on steel and aluminum and is expected to make a decision on Wednesday, with implementation slated for April 15. The Commission’s decision-making process involves a comitology procedure, allowing the Commission to proceed unless a qualified majority of member states opposes it.

The Commission has announced a proportional response of up to EUR 26 billion, aligning with the economic scope of the US tariffs. Further action regarding tariffs on cars and auto parts, as well as the reciprocal tariffs of 20 percent, will be determined after thorough analysis and consultation.

The Commission emphasizes a cautious approach, stating that “everything is on the table” and that it aims to implement measures that inflict maximum impact on the US while minimizing harm to Europe. This includes targeting American products with available alternatives, such as “Harley Davidson” motorcycles, “Levis” jeans, or soybeans.

Initial estimates suggest the reciprocal tariffs of 20 percent could affect approximately EUR 290 billion of European exports to the US, generating EUR 58 billion in revenue for the Americans. Tariffs on cars and auto parts could yield EUR 16.5 billion, while tariffs on aluminum and steel exports could generate EUR 6.5 billion.

Overall, the additional US tariffs impact goods worth around EUR 380 billion, representing approximately 70 percent of total EU exports to the US. This could potentially increase US customs revenue to EUR 81 billion per year.

The Commission holds exclusive jurisdiction over foreign trade, preventing individual member states from directly negotiating with the Trump administration. The Commission must also ensure the equitable distribution of the burden of countermeasures, considering the varying dependence of member states on trade with the US market.

The future of the announced tariffs remains uncertain, with speculation that they may serve as a tactic to secure concessions, as Trump stated the tariffs would give him “great bargaining power.”