EU Proposes Tariffs, Including on Wood Products, in Response to US Tariffs

On Tuesday, the European Commission announced that it was imposing tariffs on US imports into the EU in response to new US tariffs on EU steel and aluminum.

In total, the EU countermeasures could apply to US goods worth up to €26 billion, matching the economic scope of the US tariffs. The Commission said the countermeasures will be rolled out in the following two phases:

1. First, the Commission will allow the suspension of existing 2018 and 2020 countermeasures against the US to lapse on April 1. These countermeasures target a range of US products that respond to the economic harm done on €8 billion of EU steel and aluminum exports.
2. Second, in response to new US tariffs affecting more than €18 billion of EU exports, the Commission is putting forward a package of new countermeasures on US exports. They will come into force by mid-April, following consultation of Member States and stakeholders.

A “list of products which could be subject to possible measures” as part of the second phase includes softwood lumber, various panel products, and pulp.

In a statement accompanying the announcement, President of the European Commission Ursula von der Leyen said:

“The trade relations between the European Union and the US are the biggest in the world. They have brought prosperity and security to millions of people, and trade has created millions of jobs on both sides of the Atlantic. As of this morning the United States is applying a 25% tariff on imports of steel and aluminium. We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. In Europe and in the United States. The European Union must act to protect consumers and business. The countermeasures we take today are strong but proportionate. As the US are applying tariffs worth 28 billion dollars, we are responding with countermeasures worth €26 billion. This matches the economic scope of the US tariffs. Our countermeasures will be introduced in two steps. Starting with 1 April and fully in place as of 13 April. In the meantime, we will always remain open to negotiation. We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs. We are ready to engage in meaningful dialogue. I have entrusted Trade Commissioner Maroš Šefčovič to resume his talks to explore better solutions with the US.”