European Union leaders in Brussels have vowed to retaliate strongly against the latest round of US tariffs on steel and aluminium imports, escalating trade tensions between the two economic powerhouses.
The move, announced by US President Donald Trump, has drawn sharp criticism from EU officials, who have promised firm countermeasures to protect European economic interests.
European Commission President Ursula von der Leyen expressed deep regret over the tariffs and reiterated that the EU would not allow its industries to suffer unjustified trade restrictions.
“Unjustified tariffs on the EU will not go unanswered—they will trigger firm and proportionate countermeasures. The EU will act to safeguard its economic interests. We will protect our workers, businesses, and consumers,” she declared in a statement on Tuesday.
German Chancellor Olaf Scholz echoed her sentiments, emphasizing that the EU would stand together as the world’s largest single market to counter the US decision. “We will act together, ensuring that European industries and economies are not unfairly disadvantaged,” Scholz stated.
US Tariffs: A Repeat of 2018 Trade Disputes
President Trump’s executive orders, signed on Tuesday, impose a 25% tariff on steel and aluminium imports from multiple countries, including Argentina, Australia, Canada, Mexico, EU nations, and the UK. The steel tariffs will also apply to imports from Brazil, Japan, and South Korea.
- This latest protectionist measure mirrors Trump’s first-term policies, when similar tariffs in 2018 sparked retaliatory EU duties on American goods, including bourbon whiskey, motorcycles, and orange juice. The new tariffs come amid broader concerns about rising global trade barriers and inflationary pressures.
In response, EU trade chief Maros Sefcovic condemned the move as a “lose-lose scenario,” arguing that tariffs would ultimately hurt American consumers and businesses by driving up prices.
“By imposing tariffs, the US will be taxing its own citizens, raising costs for its own businesses, and fuelling inflation,” Sefcovic warned while addressing the EU parliament in Strasbourg, France.
Potential Expansion to Other Key Sectors
The impact of the tariffs could extend beyond steel and aluminium, as Trump hinted at further trade measures targeting automobiles, pharmaceuticals, and semiconductor chips. If enacted, such tariffs could severely disrupt global supply chains and provoke a more aggressive response from the EU.
The American Chamber of Commerce to the EU has also voiced opposition to Trump’s decision, warning that it could have a “wide-reaching and overwhelmingly negative impact on jobs, prosperity, and security on both sides of the Atlantic.”
What’s Next?
The European Union is expected to outline its countermeasures in the coming weeks. Possible responses could include higher tariffs on US exports, stricter regulations on American tech firms operating in Europe, or legal challenges at the World Trade Organization (WTO). The EU’s strategy will likely aim to balance firm retaliation with diplomatic efforts to avoid a full-scale trade war.
As both sides brace for potential economic fallout, global markets will be watching closely for further developments. The outcome of this dispute could shape transatlantic trade relations for years to come.
Key Highlights:
- European Commission President Ursula von der Leyen warns of firm retaliation against US tariffs.
- German Chancellor Olaf Scholz calls for a united EU front.
- US President Donald Trump imposes 25% tariffs on steel and aluminium imports starting March 12, 2025.
- EU trade chief Maros Sefcovic describes the move as an “economically counterproductive” decision.
- Potential additional US tariffs on cars, pharmaceuticals, and computer chips spark concerns.
