US policy continues to rely on tariffs. After initially imposing tariffs on neighboring countries, product groups are now being targeted.
As announced, US President Trump has now imposed special tariffs on many steel and aluminum imports from the EU. These are 25%. In this regard, Trump is terminating the currently applicable exemptions on March 12, 2025.
Furthermore, Trump indicated that further tariffs on vehicles, pharmaceuticals, and chips could follow. Retaliatory tariffs are expected from the EU.
(Proclamation on the White House website: https://www.whitehouse.gov/presidential-actions/2025/02/adjusting-imports-of-steel-into-the-united-states/)
Commission President von der Leyen has already announced that the EU will respond with “proportionate countermeasures.” (Statement from February 11, 2024, available at: https://ec.europa.eu/commission/presscorner/detail/en/statement_25_469).
In all likelihood, there will then be tariffs on US products. Already during his first term, Trump had imposed special tariffs on steel and aluminum. Consequently, the EU then levied tariffs on US products such as jeans, whiskey, and motorcycles.
Originally, President Trump had already imposed a tariff on steel and steel products in Proclamation 9705 and Proclamation 9980 (Proclamation 9705 can be found at https://www.federalregister.gov/documents/2018/03/15/2018-05478/adjusting-imports-of-steel-into-the-united-states and Proclamation 9980 can be found at: https://www.federalregister.gov/documents/2020/01/29/2020-01806/adjusting-imports-of-derivative-aluminum-articles-and-derivative-steel-articles-into-the-united.)
Former President Biden had not applied Proclamation 9705 and Proclamation 9980 through Proclamation 10328 (Proclamation 10328 can be found at: https://www.federalregister.gov/documents/2022/01/03/2021-28516/adjusting-imports-of-steel-into-the-united-states). Instead, European imports into the US were limited by a series of measures, including the introduction of a tariff quota (see Section 5 of Proclamation 10328). Trump has now terminated the currently existing exemptions as of March 12, 2025.
When relocating production facilities due to these developments, it is important to consider the current ECJ judgment of November 21, 2024, C-297/23 P, Harley-Davidson Europe and Nevia Logistics Services International/Commission. According to this, the primary or predominant reason for relocating production must not be the saving of tariffs. The ECJ requires other objective reasons that are documentable and thus verifiable.
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