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EU to discuss response to U.S. tariffs on steel and

aluminium

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EU prepared with countermeasures, may reactivate 2018

tariffs

(Adds discussion details from trader ministers meeting)

By Philip Blenkinsop and Julia Payne

BRUSSELS, Feb 12 (Reuters) -

The European Union hopes to avert a damaging trade war with

the U.S. over impending metals

tariffs

by prioritising negotiations rather than retaliatory

countermeasures, EU officials signalled on Wednesday.

Ministers responsible for trade from the bloc's 27

members met in a video conference on Wednesday to discuss the EU

response to U.S. President Donald Trump imposing 25% tariffs on

all steel and aluminium imports from March 12.

European Commission President Ursula von der Leyen has

called those tariffs unjustified and said they would "trigger

firm and proportionate countermeasures".

An EU government official said ministers discussed potential

measures, such as reinstating import duties imposed in 2018 on

U.S. products from bourbon to Harley Davidson ( HOG ) motorcycles in

response to the first Trump administration's tariffs on steel

and aluminium.

Those EU measures were suspended after an agreement with

the Biden administration. The Commission did not reveal much

about its thinking, sources said.

Instead, the ministers broadly agreed that negotiation

was the best option and that the bloc should present a united

front.

"There is a window for negotiation ahead of the 12 March

deadline," Irish Foreign Minister Simon Harris said in a

statement.

One EU diplomat said it was time to be "cool-headed,"

with a month still to go before the tariffs take effect.

Also on Wednesday, EU trade chief Maros Sefcovic had a first

call with U.S. counterparts - Commerce Secretary nominee Howard

Lutnick, U.S. Trade Representative nominee Jamieson Greer and

National Economic Council director Kevin Hassett.

"Cooperation is our preferred option. So, we remain

committed to constructive dialogue and finding negotiated

solutions, while protecting the EU interests - the same way the

US is protecting theirs," an EU spokesperson said, adding the

parties had agreed to meet soon.

Carlos Cuerpo, Spain's trade minister, told journalists

in Poland on Wednesday that a general agreement on tariffs was

needed.

"For that reason, we will continue with the dialogue,"

he said.

German Economy Minister Robert was set to emphasise on

the video conference the need to prevent a trade dispute and

for the EU to show a united front.

"It remains important for the European Commission to hold

talks with the U.S. administration in order to reach a solution

regarding the tariffs," Habeck's ministry said.

"At the same time, it must make it clear - and the

Commission has already announced this - that it has prepared

countermeasures," it continued.

The Commission has not given detail of its measures. One

option would be to reactivate the tariffs the EU imposed in 2018

on products such as bourbon, motorcycles and orange juice. These

were suspended under a truce agreed between von der Leyen and

former U.S. President Joe Biden.

A European industry source said they expected the EU to make

clear it was ready to retaliate but continue negotiations to

broker a truce before any U.S. levies kick in.

The European Union is not the United States' largest

supplier of steel and aluminium, but exports are substantial.

The United States is the second-largest export market for EU

steel, with annual shipments worth an average of about 3 billion

euros ($3.10 billion) over the past decade. EU aluminium exports

were worth 2.4 billion euros in the first 11 months of 2024.

Lobby group European Aluminium urged the European Commission

to engage in immediate talks with U.S. counterparts to seek a

resolution.