The European Commission recently proposed to impose tariffs of 25 percent on certain US products. This measure is a response to existing tariffs imposed by the US on steel and aluminum, which have been in effect since April 1, 2025. Commission President Ursula von der Leyen emphasized that these countermeasures are necessary to protect European consumers and businesses and to mitigate the economic damage caused by the US tariffs.
Background of the Tariff Measures
- US Tariffs: The US has already imposed tariffs of 25 percent on imports of steel and aluminum. These measures affect goods worth about 28 billion US dollars.
- EU Response: Considering these circumstances, the EU plans to implement new tariffs on US products worth over 18 billion euros as a countermeasure. This is taking place after consultations with member states and stakeholders until mid-April.
Possible Impacts
The introduction of these tariffs could have significant impacts on trade between the EU and the US:
- Trade Relations: Trade flows between both regions are among the largest in the world. An increase in tariff costs could burden both businesses and consumers, as higher prices for imported goods are expected.
- Global Markets: Analysts fear that such measures could lead to further escalation of the trade conflict, which would adversely affect global economic growth. In particular, export-dependent industries could come under pressure.
Investor Interest
This development is particularly relevant for investors:
- Higher tariffs may create uncertainties in the markets and negatively impact corporate profits.
- Investors should pay close attention to how these political decisions might evolve and which sectors will be most affected.
Overall, the situation reflects a complex interplay between geopolitical tensions and economic interests on both sides of the Atlantic.