Brussels: Europe and the Arabs
The President of the European Commission said in Brussels this morning that the trade relationship between the European Union and the United States is the largest in the world. It has brought prosperity and security to millions of people, and trade has created millions of good jobs on both sides of the Atlantic. She added in a statement issued by the Commission headquarters that as of this morning, the United States is imposing 25% tariffs on steel and aluminum imports. We deeply regret this action. Tariffs are tantamount to taxes, and they are bad for businesses and worse for consumers. They disrupt supply chains and create uncertainty for the economy. Jobs are at stake, and prices will rise. No one needs that—whether in the European Union or in the United States.
The European Union must act to protect consumers and businesses. The countermeasures we are taking today are strong but proportionate. While the United States is imposing tariffs worth $28 billion, we are responding with countermeasures worth €26 billion. This is in line with the economic scope of the US tariffs. Our countermeasures will be implemented in two phases, starting April 1 and fully effective April 13. In the meantime, we remain open to negotiations.
We firmly believe that in a world fraught with geoeconomic and political uncertainties, it is not in our common interest to burden our economies with such tariffs. We are ready to engage in a meaningful dialogue. I have tasked Trade Commissioner Maroš Šefčović to resume his talks to explore better solutions with the United States. The statement quoted Commissioner Maroš Šefčović, in charge of this file, as saying, "Let me start by expressing regret. The tariffs imposed by the US today are taking us in the wrong direction, and the reason is multifaceted. The EU-US trade partnership is balanced and highly profitable for both sides. With regard to steel and aluminum in particular, we share some challenges—for example, global overcapacity caused by non-market practices—and the EU is part of the solution, not the problem. Last month, during my visit to Washington to raise these points, it became clear that the EU is not the problem, which makes the current measures even more unjustified. I advocated avoiding the unnecessary burden of measures and countermeasures. But applause is warranted.
The US administration has chosen a harmful approach of unjustified tariffs, leaving us no choice but to respond—and that is exactly what we are doing.
First, starting in April, we will automatically reinstate the currently suspended rebalancing measures from 2018 and 2020, effectively targeting €4.5 billion worth of US goods exported to us. Second, the Commission is taking decisive steps towards a package of additional countermeasures that will apply to €18 billion of US exports to the EU.
Over the next two weeks, we will consult with key stakeholders to help us shape this new package.
The aim is to offset the increase in trade value affected by US tariffs while minimizing their impact on European businesses and consumers. However, the disruption caused by tariffs can be avoided if the US administration accepts our extended hand and works with us to reach an agreement. Led by the President, I am ready to negotiate. We are ready to make it happen.