San Francisco Frontiers - EU hits back hard at Trump tariffs to force dialogue

President Donald Trump's 25-percent levies took effect just after midnight struck in Washington, "with no exceptions or exemptions", as promised by the White House -- despite countries' efforts to avert them.

The European Commission, which leads the EU's trade policy, responded swiftly by saying it would impose "countermeasures" from April 1.

They will target US states controlled by Trump's Republican Party as well as goods that the EU believes will hurt American businesses enough to force the president to row back.

Although Trump's higher customs duties impact a swathe of countries, only the European Union and China initially vowed to retaliate to defend their businesses and citizens.

"We deeply regret this measure," European Commission chief Ursula von der Leyen said.

"Tariffs are taxes. They are bad for business and worse for consumers. They are disrupting supply chains. They bring uncertainty for the economy," she added.

An EU official said the 27-country bloc wanted to "show strength" and give a response that "very clearly shows how we consider this completely unnecessary", all while seeking to resolve the tensions through dialogue.

But the official said the EU was not filing a World Trade Organization complaint at this point as it observes how the United States reacts.

Von der Leyen estimated the US tariffs would target $28 billion worth of exports, and the European Union's response would affect the same amount of US products.

European businesses and American firms on the continent criticised the tariffs, warning they would do damage to both sides of the Atlantic.

- 'Lose-lose scenario' -

The EU plans to target industrial goods and agricultural products, particularly those exported to Europe from politically important states.

This will include soybeans produced in Louisiana, the home of US Speaker Mike Johnson, as well as beef and poultry from states that voted for Trump in the last election: Nebraska and Kansas.

The EU official said the bloc could source soybean from Brazil or Argentina.

The hope is that the targeted products "will provide the right incentives to the US to come to the table", the official said.

The intensifying drum beats for a damaging trade war between the EU and the United States have spooked businesses.

"These tariffs, along with the EU's announced countermeasures, will only harm jobs, prosperity and security on both sides of the Atlantic," warned Malte Lohan, CEO of the American Chamber of Commerce to the EU.

"Additional US tariffs... are a lose-lose for both sides of the Atlantic," said Markus J Beyrer of EU-wide lobby group BusinessEurope.

But Washington has framed the move as a bid to protect US steel and American workers as the sector declines and faces fierce overseas competition, especially from Asia.

The latest duties will also impact Australia, Britain, Canada, Japan and China as well as Brazil and Mexico despite last-ditch attempts by some to get exemptions.

Amid fears the US move will lead to steel dumping in Europe, the bloc will monitor the situation and take action where necessary to protect European industry, officials say.

- Target 'right products' -

It's not the first time Trump has slapped tariffs on the metals.

During his first presidency, he imposed duties on steel and aluminium exports in 2018 -- prompting the EU to respond with its own higher duties that were later frozen in a deal with Washington.

As part of the EU's two-pronged approach to Trump's actions, von der Leyen said Brussels will allow the previous levies to take effect again automatically when their suspension ends on March 31.

"For the first time, these rebalancing measures will be implemented in full. Tariffs will be applied on products ranging from boats to bourbon to motorbikes," the commission said.

And the EU formally launched a procedure on Wednesday to draw up and impose additional countermeasures.

The first step will be a "two-week stakeholder consultation" to make sure the "right products" are targeted and avoid disruptions to consumers and businesses.

The measures would be fully in place by mid-April unless Trump reverses course.

C.Williams--SFF