EU to Impose $28 Billion Tariffs on U.S., Targeting Steel and Aluminum

The European Union (EU) is reportedly planning to impose retaliatory tariffs on approximately $28 billion (about 40 trillion Korean won) worth of U.S. imports in response to the Trump administration’s unilateral imposition of high tariffs.

This decision comes as a strong reaction from the EU to a series of trade measures enacted just 75 days after President Donald Trump took office.

Through this action, the EU appears to be making its first move in response to becoming a new target of U.S. tariffs, following China, Mexico, and Canada.

The European Commission is scheduled to hold a meeting in Luxembourg on the 7th (local time) to decide on the retaliatory tariffs against the 25% tariffs imposed by the U.S. on steel and aluminum products.

This move is in response to the high tariffs on steel and aluminum implemented in mid-March and is separate from the "reciprocal tariffs" set to take effect on the 9th.

Last year, the EU imported approximately $370 billion (about 540 trillion Korean won) worth of goods from the U.S., and about 7.5% of that — $28 billion — will be subject to the retaliatory tariffs.

Key items include meat, grain, wine, lumber, clothing, as well as chewing gum, dental floss, vacuum cleaners, and toilet paper.

Meanwhile, the Trump administration has announced plans for reciprocal tariffs of 34% and 20% on China and the EU, respectively.

However, these reciprocal tariffs are unrelated to the 10% "universal tariff" implemented from the 5th, and the 57 countries subject to reciprocal tariffs — including South Korea — are exempt from the universal tariff.

While the EU has strongly opposed the Trump administration’s unilateral tariff measures, it has also left room for negotiation.

However, if the U.S. pushes ahead with the 20% reciprocal tariffs without negotiation, the EU has hinted that it could respond with a much larger scale of additional retaliatory tariffs beyond the current measures.