EU may speed up tariffs in response to US duties

The European Union is preparing for another round of trade talks with the United States. The bloc has warned that it could accelerate retaliatory measures if Donald Trump follows through on his tariff threats, the latest of which includes a 50% duty on steel and aluminum imports, Bloomberg reports.

The European Commission (EC) said on June 2 that it deeply regrets the increase in tariffs on steel and aluminum from the originally planned 25%.

European Trade Commissioner Maroš Šefčovič will meet with US Trade Representative Jamieson Greer in Paris on June 4, and the EC team will travel to Washington to continue technical negotiations, European Commission spokesman Olof Gill told reporters.

According to him, if a mutually acceptable solution is not reached, both existing and possible additional EU countermeasures will automatically come into force on July 14 or earlier if circumstances require.

Hill emphasized that the EC has always been clear about its readiness to act in defense of the bloc’s interests. He noted that the EU’s priority is to create space for negotiations, and that tariff reduction remains a long-term goal.

The EU is trying to speed up negotiations with the US before the July 9 deadline – Trump has postponed a 50% tariff on almost all imports from the bloc to the US until then.

Currently, the bloc is facing 25% tariffs on steel and cars, as well as “reciprocal” duties on most EU goods. The latter were previously set at 20%, but are being held at 10% for a 90-day pause until July.

The EU, in turn, has suspended the first package of countermeasures for €21 billion of annual US imports in response to US metals duties. The bloc is also preparing an additional list of tariffs on US goods worth up to €95 billion. These measures are in response to Trump’s “reciprocal” duties and automobile tariffs.

On May 30, US President Donald Trump announced at the US Steel plant in Pennsylvania that he would impose tariffs on steel imports to the United States at 50%, doubling the current rate, to protect the country’s steelmakers. Later, he clarified on social media that the increased tariff rate would take effect on June 4. The announcement was welcomed by the American Iron and Steel Institute (AISI) and the American Steel Association. They cited the growth of global overcapacity led by China and the need to protect the US market.

The doubling of US tariffs on steel imports will put enormous pressure on the European steel industry, the German steel association WV Stahl said.