The punitive tariffs on steel and aluminum announced by US President Trump have come into force. How big is the danger to Europe’s economy? Are jobs at risk? Which products could be expensive? Questions and answers.
Since when have the tariffs apply?
At 5.01 a.m. German time on Wednesday, US President Donald Trump launched new tariffs of 25 percent on the import of steel and aluminum products in the USA.
How did the EU react?
The EU announced countermeasures around an hour later. From April 1st, EU extracölle will again be due to the import of American products such as Bourbon Whiskey, video game consoles, boats and peanut butter. The customs set is said to be 50 percent – for example for motorcycles that the well -known manufacturer Harley -Davidson builds in the USA.
The European Commission’s plans also provide to prove numerous other imports with counter -tariffs from mid -April in coordination with the Member States. They are supposed to meet companies that sell American agricultural products such as poultry, beef, certain seafood, nuts, eggs, dairy products, sugar and vegetables. In addition, there should also be EU extracelle on other industrial products such as textiles, leather goods, household appliances, tools, plastics and wood products. The duty rate could be 25 percent.
What does the customs dispute mean for economy and jobs?
EU Commission President Ursula von der Leyen sees considerable dangers. Specifically, it predicts rising prices, problems in supply chains and the risk of job losses. “Customs are taxes. They are bad for companies and even worse for consumers,” she says.
Some economists share this view. The resulting uncertainty has a negative impact on the investments of companies and the economy in general, analyzes Samina Sultan from the Institute of German Economy (IW). “This should also endanger jobs on both sides of the Atlantic.”
However, Trump’s concrete tariffs would hardly affect the European economy, estimates the Institute for the World Economy (IFW) in Kiel. Steel and aluminum products included only about five percent of all EU exports, and only a small proportion of them would go to the USA. For the gross domestic product of the European Union, this would only mean a decline of 0.02 percent, according to the IFW.
Which products could be more expensive?
Basically everyone who is affected by the tariffs. “How much more expensive depends on how high the demand is or whether the products can easily be replaced by equivalent products from Europe,” said economist Sultan.
For jeans, the fashion association Germany considers the effects, for example, to be manageable. Products that come directly from the USA played a major role on the market in Germany, says a spokeswoman. The most important manufacturer countries are China, Bangladesh and Turkey. According to the Federal Statistical Office, the import value for jeans from the USA was only a good three million euros in 2024 – this corresponds to just 0.1 percent of all jeans imports.
Is that the beginning of a great trade war?
That depends above all on Donald Trump. Thomas Gitzel, chief economist of VP Bank in Liechtenstein, sees the risk of an escalation spiral. In contrast to the trade conflict between the EU and the USA in Trump’s first term, US criminal measures could only be the start of a whole series of tariffs. “A global trade war slowly absorbs speed,” he says. Trump has already announced that they want to impose new tariffs on cars and other goods from the EU.
As a result of increased US tariffs against China, goods from the Far East could also flock more to Europe, says Rolf Langhammer, economist at the IFW. “Fearing is a negative game game in which everyone loses.”
What’s next?
From the Leyen emphasizes that the EU is ready to negotiate. “We are firmly convinced that in a world full of geo-economic and political uncertainties, it is not in our common interest to burden our economies with such tariffs,” she says.
What could the EU offer Trump?
According to the EU Commission, the European Union and Trump could conclude a new deal to expand American exports of LPG (LNG). “We still get a lot of LNG from Russia, so why not use American LNG instead, which is cheaper for us and lowers our energy prices,” said von der Leyen after a phone call in November.
In addition, it would be possible to import more military technology and agricultural goods from the USA and reduce the import duties for US cars. At ten percent, these were significantly higher than 2.5 percent.
What are the EU’s pressure tools?
The EU’s extra tariffs could be sensitive to some US companies. Trump had already introduced special tariffs on the import of steel and aluminum products from 2017 to 2021 and justified this “with interests of national security”. At that time, the EU reacted with retaliation tariffs to US products such as bourbon whiskey and motorcycles-and manufacturers like Harley-Davidson complained of negative effects.
An EU official in Brussels said that the United States is where it hurt. This means that you have a list of products that have a high iconic and symbolic value. In order to build up as great political pressure, products are also targeted that come from the home of influential party friends of Trump. For example, there should be new EU tariffs on soybeans, which are produced, among others, in Louisiana, the home of representative spokesman Mike Johnson.
How do other states react to the new tariffs?
In his part, Canada announced other import duties on US products. As of Thursday, US goods worth $ 29.8 billion would apply 25 percent tariffs (the equivalent of around 18 billion euros), the Canadian finance minister Dominic Leblanc told journalists. Computers, sports equipment and products from cast iron are particularly affected. Trump announced on Tuesday to double the tariff from 25 percent against Canada to 50 percent. Only hours later he took back this doubling.
Other states reacted more relapses: Great Britain’s Prime Minister Keir Strander was “disappointed” – he had hoped that his country would be except for Trump’s tariffs. Negotiations for an economic agreement with the United States should now continue and initially no countermeasures are taken, as Minister of Commerce Jonathan Reynolds said.
Japan and Australia also hoped for exceptions and initially forego a counter -strike. Brazil said the country was not intended to enter into a trade war with the United States. In addition to Mexico and especially Canada, the South American country is one of the most important steel suppliers for the USA.
The Chinese Ministry of Foreign Affairs reacted more clearly: “all necessary measures” will be taken to protect your own interests. The USA of the United States violates “the rules of the world trade organization”. The People’s Republic is the largest steel producer in the world, but the United States is less important for it as a sales market. Imports from China to the United States recently took Trump with 20 percent tariffs. The government in Beijing reacted with counter -tariffs, but at the same time is also ready to talk.
With material from dpa
