The European Union's trade ministries will meet early next week to discuss their views on trade following the so-called “liberation day” tariffs announced on April 2, according to an official document released by the EU on Friday, April 4.
The meeting is scheduled for April 7 and is seen as an opportunity to assess the impact of recent measures and discuss the potential for finding mutually acceptable solutions, which remains the preferred outcome for the EU, the document says.
"Although the EU prefers a negotiated and constructive solution, the ministers will also discuss possible countermeasures if the situation requires it," the statement said.
The Commission, in close cooperation with member states, is finalizing the EU's response, especially regarding US duties on steel, aluminum and the automotive industry.
However, any potential US measures in other sectors are also being considered, along with the latest 20% duties announced by the US for the EU.
According to Fastmarkets, it is also planned to discuss trade relations with China during the meeting.
Background
On April 2, the White House announced the introduction of additional retaliatory duties affecting all US trading partners, including the EU.
As a result, all EU imports to the United States were subject to 20 percent comprehensive tariffs, which affected the already struggling European manufacturing sector, including the automotive industry.
Although no additional duties were imposed on steel at the time, the United States imposed duties of up to 25% on imports of steel, aluminum, and some steel and aluminum-containing products from the EU and other trading partners as early as March 12, according to Fastmarkets.
The market is still digesting tariffs and their overall impact on commodities. Meanwhile, industry sources speaking to Fastmarkets are already anticipating the potential impact.
"The upcoming virtual meeting will be a strategic dialogue with key industry stakeholders with the aim of: gathering information on the real and expected impact of US duties on steel and aluminum from the EU, exploring the sector's proposals for an effective EU response, and helping shape the next phase of EU trade protection policy," the European Steel Association Eurometal said in a statement on 4 April.
The European steel Association Eurofer reported that the EU steel industry is already in crisis: in 2024, it had to close its production capacity of 9 million tons of steel per year, as well as announce the reduction of 18,000 jobs.
The latest steel tariffs will put additional downward pressure on the already dysfunctional industry, which is faced with shrinking margins and falling demand.
