The European Union is planning to impose tariffs on U.S. products in response to US tariffs affecting more than 26 billion euros ($28.2 billion) of EU steel and aluminum exports.
The United States imposed tariffs of up to 25 percent on imports of steel, aluminum, and certain products containing steel and aluminum from the EU and Canada on March 12.
In response, the EU is proposing two countermeasures: reimposing suspended 2018 and 2020 countermeasures and imposing a new packaging of additional measures.
The European Commission said it will end its current suspension of tariffs on U.S. products on April 1 and that its tariffs will be fully in place by April 13. In total, the EU countermeasures could apply to US goods exports worth up to 26 billion euros, matching the economic scope of the U.S. tariffs.
The Commission is currently targeting a mix of industrial and agricultural products, including plastics. It has opened a two-week consultation with stakeholders to decide exactly which products will be targeted by the countermeasures.
Reacting to the potential tariffs on U.S. plastic products, industry association Plastics Europe urged both the EU and the United States to "avoid escalating trade tensions further."
“Plastics Europe acknowledges the EU’s decision to potentially impose retaliatory tariffs on U.S. goods in response to the recent increase in US tariffs on steel and aluminum,” said Virginia Janssens, managing director at Plastics Europe. “While we understand the EU’s need to safeguard its economic interests, we emphasize the importance of maintaining the principles of free and fair trade that are so important to fostering global economic stability and growth.
“The imposition of tariffs, particularly on industrial goods such as plastics, will disrupt supply chains, raise costs for businesses and negatively impact consumers on both sides of the Atlantic,” Janssens continued. “The United States remains a major trade partner for the European plastics sector, accounting for 11.7 percent of extra-EU exports, valued at 3.4 billion euros ($3.6 billion), and 22.2 percent of extra-EU imports, valued at 5.3 billion euros ($5.7 billion), in 2023. These figures highlight the significant trade relationship between the EU and the US in plastics, underscoring the potential economic consequences of escalating tariffs.”
“As a key stakeholder in the European plastics industry, we urge both the EU and US to prioritize diplomatic solutions to avoid escalating trade tensions further.”
When announcing the countermeasures, European Commission President Ursula von der Leyen said the EU remained open to negotiations and considered higher tariffs to be a burden for both economies and against their common interest.
Plastics Europe said it supports the EU’s openness to negotiation. It is calling for collaborative efforts to resolve this dispute in a manner that protects industry, jobs, and consumers in both the US and Europe.
The European association joins US and Canadian plastics groups in expressing deep concern over tariffs.