On 12 March 2025, the European Commission
(EC) announced two measures intended
to retaliate against the US’ imposition of a
25% tariff on imports of steel and aluminum
products.
The EC deems the US measures to constitute safeguards
affecting €26 billion of EU exports. As such, the EC submits
that it intends to retaliate against €26 billion worth of US
exports to the EU.
The EC’s announced measures are twofold. Firstly, currently
suspended retaliatory tariffs that were first set in 2018 and
2020 are scheduled to reapply from 1 April 2025 onwards. Secondly, the EC has announced a new set of retaliatory
measures scheduled to kick-in around mid-April 2025.
I. Currently Suspended Retaliatory
Measures
First, the EC has announced that currently suspended
retaliatory tariffs on US products such as motorcycles,
lighters, whiskey and bourbon, jeans, textile products or
cosmetics will reenter into force from 1 April 2025 onwards.
The full list of concerned products and the applicable duty
rates is included in the annexes to Implementing Regulations
2018/886 and 2020/502.
As the EU’s suspension of its existing retaliatory measures is
scheduled to expire on 31 Mach 2025, the EC does not need
to take any steps for the measures to come back into force.
Their reentry into force on 1 April 2025 will be automatic.
II. New Measures
In addition to the reentry into force of suspended
retaliatory measures (see above), the EC also announced
new countermeasures to be adopted pursuant to the EU
Enforcement Regulation. The EC seeks to implement the
new measures by 13 April 2025.
The extensive, yet provisional list of products bound to fall
within the scope of these new measures is available here.
Concerned products* include:
Agricultural products, alcoholic beverages and other foodstuffs
Tobacco products
Minerals
Personal care and cosmetic products
Plastic, other petrochemicals and products thereof
Leather and articles thereof
Wood and products thereof
Furniture and luminaire
Paper products
Textile articles, including clothing and home textiles
Glassware
Knives, razors and scissors
Precious stones
Precious metals and jewelry thereof
Iron, steel and aluminum products
Appliances
Building tools
Lawn mowers
Motorcycles
Optical equipment
Paintings less than 100 years old
The proposed list of targeted US products is not definitive
yet. The EC is therefore consulting stakeholders until 26
March 2025. Following stakeholder consultations, the new
measures will be raised with the EU’s member states, which
are expected to greenlight them before their publication in
the EU Official Journal and entry into force.
III. Next Steps For Businesses
The countermeasures announced by the EC are substantial,
and likely to affect trade between the EU and the US.
Additionally, the US may counter-retaliate, in a tit-fortat
dynamic that is often referred to as a “trade war”.
For example, President Trump has already threatened a
200% tariff on all EU exports of alcoholic products to the
US in response to EU tariffs on US whiskey. Further EU
countermeasures are also possible.
Over the coming weeks, companies involved in trade
between the EU and the US are advised to closely monitor
and consider these developments. Companies exporting
products from the US falling within the scope of the EU’s
currently suspended or new countermeasures should start
preparations to account for any financial and logistical impact.
Simultaneously, companies should engage in the stakeholder
consultations ongoing until 26 March 2025 to make their
voice heard with the EC. Products may still be taken out the
list before its final publication in the EU Official Journal.
Companies without in-scope products are still encouraged
to monitor the situation and engage as well. As the new
measures may still change, such companies may still
see their products included within the definitive scope.
Additionally, upstream and downstream value chains may
also be affected.
IV. How We Can Help
The Squire Patton Boggs Public Policy and International Trade
& Foreign Investment Practice Groups are closely monitoring
and advising clients with respect to ongoing trans-Atlantic
trade developments. Our lawyers and trade experts in both
the EU and the US stand ready to assist with any institutional
engagement, such as in the filing of comments as part of
the EC’s ongoing stakeholder consultation. They may also
respond to any questions concerning the operation and
implications of both the EU and US measures. Ultimately,
the current trade situation warrants strategic and operational
awareness that our team will be delighted to provide.
* For product categories already within the scope of currently suspended countermeasures, such as alcoholic beverages or motorcycles, the new countermeasures cover certain previously unaffected product types.
