Brussels: The European Commission announced Wednesday that it will impose retaliatory measures starting April 1, responding to the United States' new 25 percent tariffs on steel and aluminium imports. European Commission President Ursula von der Leyen condemned the US action as an "unjustified trade restriction" and warned of its broader economic consequences.

“We deeply regret this measure,” von der Leyen said in a statement. “Tariffs are taxes. They are bad for business and even worse for consumers. These tariffs are disrupting supply chains and bringing uncertainty for the economy.”

The US tariffs, valued at approximately $28 billion, prompted Brussels to launch a series of countermeasures targeting an equivalent value of American goods. Products ranging from bourbon and boats to motorbikes will be affected. The EU had previously suspended similar retaliatory tariffs, but von der Leyen confirmed that this suspension would lapse at the end of March, allowing the full rebalancing measures to be implemented for the first time.

Despite the escalation, von der Leyen emphasized the EU’s willingness to negotiate, stating she had tasked Trade Commissioner Maros Sefcovic with resuming talks with Washington to find a better solution. However, Sefcovic noted earlier in the week that the US was not engaging with the EU’s efforts.

The commission began a two-week stakeholder consultation process on Wednesday to identify the “right products” for targeted tariffs, aiming to minimize disruption for EU businesses and consumers. Full implementation of the countermeasures is expected by mid-April unless the US revises its decision.

Japan Calls US Tariffs "Regrettable," Warns of Economic Fallout
Meanwhile, Japan expressed disappointment over not being granted an exemption from the new US tariffs. Chief Cabinet Secretary Yoshimasa Hayashi said Japan’s high-quality steel and aluminium products are “essential” to US manufacturing and do not threaten US national security.

“It is regrettable that Japan was not excluded from the imposition of additional tariffs,” Hayashi told reporters. He warned that widespread trade restrictions could have a significant impact on the Japan-US economic relationship and the global multilateral trade system.

Japan exported 31.4 million tons of steel in 2024, with about 1.1 million tons going to the US. While the direct impact of the steel and aluminium tariffs may be limited, Japan’s powerful auto industry is bracing for potential US tariffs on vehicles. Masakazu Tokura, head of Japan’s Business Federation, warned that tariffs on cars would be far more damaging.

“The biggest problem of all is the decline in predictability for business,” Tokura said, adding that this uncertainty may make companies hesitant to invest.

The escalating trade tensions have raised concerns in Japan, especially given its significant investments in US manufacturing through subsidiaries in Mexico and Canada. Tokyo has sought exemptions and assurances from Washington, but so far has not secured any commitments.