EU expects €28 billion in losses from US steel and aluminum tariffs

The European Union estimates that the first wave of the Trump administration’s tariffs on steel and aluminum will hit exports of the bloc’s member states by up to €28 billion ($29.3 billion), Bloomberg reports.

According to the sources, the number of products, which the EU expects to include derivatives, will be about four times higher than the last time Trump targeted the bloc’s steel sector.

Late last week, after a visit to Washington and a meeting with his American counterparts, European Trade Commissioner Maroš Šefčovič informed the ambassadors of the bloc that the situation was fluid and that the details and scope of any tariffs could still change, sources said.

In 2018, the United States imposed duties on almost $7 billion of European steel and aluminum exports. At that time, the United States imposed tariffs of 25% on steel products and 10% on aluminum, as well as exemptions for certain products. The bloc retaliated with tariffs on a number of American products.

Both sides agreed to a truce in 2021. The United States partially canceled its measures and introduced a set of tariff quotas (which are subject to retaliatory duties), while the European Union froze all its restrictive measures.

As a reminder, on February 10, US President Donald Trump ordered a 25 percent duty on all imports of steel and aluminum into the country without any exceptions or exemptions. The new rates will come into effect on March 12 this year.

As GMK Center reported earlier, the Trump administration has identified a list of 167 steel derivatives to be added to the Section 232 tariffs. They may be subject to an additional ad valorem duty rate of 25%.