News Global Market EU 1752 01 May 2026
The bloc is considering possible countermeasures, although technical discussions with the U.S. are ongoing
Germany and France—the EU’s largest economies—are dissatisfied with the U.S. proposal to resolve the tariff dispute over steel and aluminum, which has added uncertainty to the already stalled negotiations on the ratification of the trade agreement.
According to Bloomberg, the European Commission is considering possible countermeasures, and the parties have agreed to continue technical consultations.
The reason was the recent change in U.S. tariffs on hundreds of goods, including steel and aluminum—a move intended to resolve a long-standing tariff dispute. However, according to Bloomberg sources, Paris and Berlin reacted negatively. In their view, tariff conditions have actually worsened for about half of the affected goods.
The tariff dispute is heightening tensions surrounding the already protracted trade agreement between the US and the EU, reached last July. The document has not yet been ratified by the European Parliament—MEPs are demanding additional amendments.
Under the terms of the initial agreement, the EU committed to eliminating tariffs on American industrial goods in exchange for setting a 15% cap on tariffs for most European goods.
In August 2025, the U.S. extended the 50% tariff on steel and aluminum to hundreds of new products containing these metals. This move sparked accusations that Washington was violating recently reached agreements. Companies also faced difficulties in calculating tariffs, which are tied to the percentage of metal content in products.
European lawmakers twice suspended ratification of the agreement: first in response to Trump’s threats to annex Greenland, and then after the U.S. Supreme Court invalidated the country’s global tariff regime.
Nevertheless, both sides have recently demonstrated a willingness to finally conclude the agreement. To this end, the U.S. has agreed to revise the methodology for calculating the expanded tariffs on metals, stating that this should alleviate the accumulated discontent.
In addition to simplifying the calculations, the U.S. plans to exempt goods with a negligible share of steel and aluminum from tariffs. A 25% rate will apply to other products subject to the tariff.
The European Commission has informed member states that full compliance with the bloc’s commitments could help secure concessions on metal tariffs. If the situation is not resolved, the EC will consider further measures, without specifying details.
The tariff standoff is unfolding against the backdrop of internal EU negotiations regarding desired changes to the agreement with the US—specifically, regarding its duration and additional guarantees for European industry.
As a reminder, in April, the US adjusted tariffs on imports of steel, aluminum, and copper to simplify compliance and prevent customs value underreporting. The 50% Section 232 tariff remains in place, but from now on it will be calculated based on the prices paid by American buyers.
As previously reported, on March 26, the European Parliament gave the green light to the EU-US trade agreement concluded last year, albeit with reservations. In particular, MEPs insisted on a sunset clause: the new European preferences will take effect only after the United States fulfills its obligations—specifically, reducing tariffs on EU products containing no more than 50% steel and aluminum to a level no higher than 15%.
