UE measures
In response to the U.S. administration’s decision to reintroduce and expand duties on steel and aluminum, the European Commission has adopted a package of trade rebalancing measures. The aim is to compensate proportionately for the damage suffered by European industries, particularly in the steel and metal sectors.
Specifically, these are the measures contained in Implementing Regulation (EU) 2025/778 of April 14, 2024, which sets out a multifaceted duty structure on products originating in the United States, based on World Trade Organization (WTO) rules on safeguards.
Measures taken, but currently suspended
It is important to point out that the effective implementation of the measures was concurrently suspended until July 14, 2025, as stipulated in Implementing Regulation (EU) 2025/786. The suspension is intended to leave room for new negotiation attempts with the U.S. government for possible removal or mitigation of the U.S. tariffs.
The suspension provided by Implementing Regulation (EU) 2025/786 also affects the duty measures provided by Implementing Regulation (EU) 2020/502.
Unless further extended, the measures will come into effect in the following stages:
The planned measures
- Reinstatement of 2018 and 2020 measures: Effective April 15, 2025 (pending until July 14, 2025), the duties already provided for in Regulation (EU) 2018/886 are reinstated, with an update of Annexes I and II of that regulation. The rates provided are 10% or 25% depending on the commodity category.
- Response to U.S. tariff increase on aluminum: From May 16, 2025 (pending until July 14, 2025), a 25% duty will be applied on products listed in Annex II of Regulation (EU) 2025/778, in reaction to the increase of U.S. tariffs on aluminum derivatives from 10% (2018-2020) to 25% (2025).
- Reaction to the new 2025 U.S. tariffs: Also from May 16, 2025 (pending until July 14, 2025) for products in Annex III of Regulation (EU) 2025/778 and from December 1, 2025 for those in Annex IV of Regulation (EU) 2025/778, 25% duties will be introduced on additional categories of goods.
Implications for European businesses
Despite the temporary suspension, companies should as of now prepare for possible scenarios. In particular, companies active in the agricultural, mechanical, textile and consumer goods industries will have to:
- Verify the inclusion of their products in Implementing Regulation (EU) 2020/502 and the annexes to the new Regulation (EU) 2025/778;
- Assess the potential economic impact of the measures and plan supply chain adjustment strategies;
- Monitor the evolving regulatory and negotiating environment, including the possible U.S. response.
The (for now suspended) reactivation of European countermeasures marks a new chapter of trade tension between the EU and the U.S., highlighting a return to unilateral and protectionist logic on the U.S. side. ZPC, with its team of experts, is available to support companies in analyzing the measures taken, estimating tariff impacts and optimally managing trade flows in an increasingly complex global context.
