EU flags flutter in front of European Central Bank (ECB) headquarters in Frankfurt, Germany July 18, 2024.
Jana Rodenbusch | Reuters
The European Union will delay implementing its first set of tariffs on goods from the U.S. until the middle of April to allow for additional time for discussions with Washington, an EU spokesperson told CNBC Thursday.
“The Commission has decided to align the timing of the two sets of EU countermeasures against U.S. 232 tariffs on EU steel and aluminum,” the spokesperson told CNBC, adding that the delay “provides additional time for discussions with the U.S. administration.”
“The change represents a slight adjustment to the timeline and does not diminish the impact of our response, in particular as the EU continues to prepare for retaliation of up to EUR 26 billion [$28 billion],” they noted.
Earlier in March, the EU had indicated it would follow a two-pronged approach of reimposing previously suspended tariffs and introducing a slew of additional duties on further goods exported by the bloc to the U.S.
Those include industrial-grade steel and aluminum, other steel and aluminum semifinished and finished products, along with their derivative commercial products, such as machinery parts and knitting needles.
A broad range of other products could also be in line for duties, including bourbon, agricultural products and other industrial goods like textiles, leather goods, home appliances and more.
“Our goal is to strike the right balance of products, taking into account the interests of EU producers, exporters and consumers,” the EU spokesperson told CNBC on Thursday.
The bloc announced the measures as U.S. President Donald Trump‘s 25% tariffs on steel and aluminum imports came into effect. The EU must “act to protect businesses and consumers,” European Commission President Ursula von der Leyen said at the time. The European Commission is the executive body of the EU.
The EU also said it was expanding its own measures beyond those previously implemented as “the new U.S. tariffs are significantly broader in scope and affect a significantly higher value of European trade.”
“The objective is to ensure that the total value of the EU measures corresponds to the increased value of trade impacted by the new U.S. tariffs,” the bloc said in an explainer about its plans.
‘Possible solutions’
Maros Sefcovic, the EU’s commissioner for trade and economic security, said Thursday that discussions with the U.S. would continue.
“I have been entrusted by President von der Leyen to continue talks to try to find a solution with the U.S.,” he said, according to a written version of his remarks at the European Parliament’s International Trade Committee.
“I am engaging with my U.S. counterparts to better understand the U.S. plans and look for possible solutions,” Sefcovic said, noting that the EU was meanwhile continuing to prepare.
“On 2 April, we will need to assess the action take by the U.S. and keep a flexible approach so as to calibrate our response accordingly,” he said.
April 2 is the day earmarked by Trump for imposing reciprocal tariffs on other countries.
— CNBC’s Holly Ellyatt and Katrina Bishop contributed to this report.
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