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European Commission President Ursula von der Leyen held urgent discussions with key industrial sectors on Monday as the EU formulates its response to recent US tariffs imposed by President Donald Trump.
The Commission chief conducted a call with metals industry representatives and scheduled separate discussions with automobile manufacturers and pharmaceutical companies, seeking input for potential counter-measures beyond Brussels' initial response to Washington's steel duties.
Global markets reacted sharply to the tariff situation, with major stock indexes and oil prices plummeting on Monday. Investors fear the new duties could increase prices, weaken demand, and potentially trigger a global recession.
During her call with steel industry leaders, von der Leyen indicated the EU would propose "a trade measure replacing the steel safeguards as of 1 July 2026" to protect against "negative trade-related effects caused by global overcapacities."
Industry participants characterized the meeting as "constructive" with a "sense of urgency" that has significantly increased compared to previous months. One key proposal from Thyssenkrupp Steel Europe, the continent's second-largest steelmaker, called for "binding minimum quotas of 'European content' in private and public procurement."
The Commission had already tightened existing safeguards on steel on April 1, cutting imports by 15%. Additional measures under consideration include potential export duties on EU scrap sales to address concerns about diminishing supplies of aluminium and steel scrap for recycling.
The automotive sector, represented by the ACEA lobby group in Brussels, has advocated for a negotiated solution rather than escalation. European carmakers have been pushing for the EU to reduce its own tariffs on US automobile imports, with BMW specifically urging a reduction to 2.5% from the current 10%.
Monday's scheduled call with the auto industry included representatives from major manufacturers including BMW, Volkswagen, Stellantis, Scania, Daimler Truck, and Bosch.
The pharmaceutical industry, which escaped the initial round of US tariffs, will meet with the Commission on Tuesday. However, Trump has indicated this sector will face separate duties in the future. Industry representatives are expected to press the Commission on plans to enable more European-based manufacturing.
Pharmaceutical lobby groups EFPIA and Europabio, along with the generics association Medicines for Europe, confirmed their participation in Tuesday's discussions. Sources indicate the industry will advocate for streamlined regulatory processes, citing recent obstacles that have discouraged clinical trials in Europe.
