The European Union announced Monday it is readying retaliatory measures in response to the United States’ unexpected move to sharply raise steel tariffs, a decision that has unsettled global markets and complicated ongoing trade negotiations between Washington and Brussels.
Just days before the announcement, European Commission President Ursula von der Leyen and U.S. President Donald Trump had agreed to accelerate trade discussions. However, the sudden decision by the Trump administration to double tariffs on steel imports to 50% has now cast doubt on the progress made.
“If our negotiations don’t produce a balanced result, the EU is prepared to act, including responding to this latest tariff hike,” said Olof Gill, a spokesperson for the European Commission, during a press briefing in Brussels.
He confirmed that the EU is finalizing an extended list of countermeasures that would automatically take effect by July 14, or possibly earlier. That date marks the end of a 90-day tariff truce agreed by both sides to allow for trade talks. Trump’s steel tariff announcement came midway through that pause, raising tensions once again.
Since returning to office, Trump has reinstated a wave of tariff actions—often unpredictable—adding pressure to allies and trade partners. European officials are continuing to pursue a deal aimed at avoiding the full brunt of the 50% steel tariff.
The next round of discussions is scheduled for Wednesday in Paris, where the EU’s chief trade official, Maroš Šefčovič, will meet with U.S. Trade Representative Jamieson Greer to try and move the negotiations forward.
Some areas of potential compromise remain. The EU might agree to increase imports of American liquefied natural gas and defense equipment, and could consider reducing tariffs on automobiles. However, it’s unlikely to concede to U.S. demands to eliminate the value-added tax or open up its beef market.
As part of the talks, the EU has proposed a “zero-for-zero” approach—removing tariffs on both sides for industrial goods, including cars. While Trump has so far rejected the offer, EU officials have reiterated it remains available.
The announcement of the 50% steel tariff sparked fresh concern that prices could rise significantly on consumer goods ranging from automobiles and appliances to construction materials. Given how widely steel and aluminum are used—including in product packaging—the effect could ripple throughout many sectors of the economy.