The European Union has swiftly reacted with its own countermeasures after the US administration’s steel and aluminium tariffs kicked in today.
The political and economic bloc confirmed plans to impose its own duties on €26bn ($28.3bn) worth of American goods — including boats — this morning (12 March 2025), hours after the US administration imposed 25 per cent tariffs on steel and aluminum imports. This is seen as a significant escalation of the trade war between two traditional global allies.
EU tariffs
The EU says it is immediately starting discussions with its 27 member states, and tariffs will be adopted around mid-April.
“The countermeasures we take today are strong yet proportionate,” European Commission president Ursula von der Leyen told journalists in Strasbourg. “We firmly believe that in a world fraught with geo-economic and political uncertainties, it is not in our common interest to burden our economies with such tariffs.”
President Donald Trump’s tariffs, which are enforced under Section 232 of the Trade Expansion Act, were originally introduced in 2018 under Trump’s first term to bolster domestic production. The American recreational boating industry, which relies heavily on materials like steel and aluminum for boat manufacturing, is expecting increased production costs and potential disruption within supply chains.
On Tuesday (11 March), Trump threatened to double his planned tariffs on steel and aluminum from 25 per cent to 50 per cent for Canada. The threat saw the provincial government of Ontario suspend its planned surcharges on electricity sold to the United States. The US administration responded today by confirming the president had pulled back on the threat of doubling Canadian tariffs.
In a statement issued this morning, the European Boating Industry (EBI) says it “strongly opposes” the EU’s retaliatory tariffs and highlights the potential risks to European businesses and the entire value chain.
“EBI urges both sides to engage in careful negotiations over the coming days and weeks to resolve this urgent issue,” the statement reads. “The imposition of retaliatory tariffs, as seen between 2018 and 2021, would have significant negative consequences. Tariffs disrupt businesses, hinder economic growth, and jeopardise jobs, particularly for small and medium-sized enterprises (SMEs) that form the backbone of the boating industry in Europe and the EU as a whole.
“It is important to note that these tariffs are unrelated to the recreational boating sector, arising from the dispute over steel and aluminium. They would negatively impact European industry and the EU’s competitiveness goals and carry unintended consequences. The permanent removal of tariffs on unrelated sectors, such as recreational boats, would instead support economic growth on both sides of the Atlantic.”
EBI says it is engaging in ongoing dialogue with the EU Commission, its partner the US, and other affected European sectors.
The recreational boating industry in Europe consists of over 32,000 businesses and directly employs more than 280,000 people. Over 96 per cent of businesses in the sector are SMEs.
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