The European Union vowed to respond with “firm and proportionate countermeasures” after US President Donald Trump announced sweeping tariffs on all steel and aluminium imports, according to Reuters.
The new measures, set to take effect on 4 March, raise the tariff rate on aluminium to 25% and eliminate all country exemptions and product-specific exclusions. Trump’s decision, which applies to imports from Canada, Brazil, Mexico, South Korea, and other nations, marks a significant escalation in his trade policy.
It’s 25% without exceptions or exemptions. That’s all countries, no matter where it comes from, all countries.
He also hinted at upcoming reciprocal tariffs on countries that impose duties on US goods, as well as potential tariffs on cars, semiconductors, and pharmaceuticals.
European Commission President Ursula von der Leyen expressed deep regret over the US decision, calling tariffs “taxes that are bad for business and worse for consumers.” She warned that the EU would not let the measures go unanswered.
Unjustified tariffs on the EU will not go unanswered – they will trigger firm and proportionate countermeasures. The EU will act to safeguard its interests.
The EU is considering reactivating tariffs on US products such as bourbon, motorcycles, and orange juice, which were suspended under a truce agreed with former US President Joe Biden. These tariffs are currently paused until the end of March.
EU trade chief Maroš Šefčovič described the US move as a “lose-lose scenario,” emphasising the potential harm to both economies.
Global repercussions
The announcement sent shockwaves through global markets, with gold prices hitting a record high as investors sought safe-haven assets. Steel and aluminium producers in Asia and Europe saw their shares decline, while US steel and aluminium companies experienced a surge in stock prices ahead of the tariff implementation.
Canada, the largest supplier of primary aluminium to the US, condemned the tariffs as “unacceptable.” Prime Minister Justin Trudeau, speaking at the Paris artificial intelligence summit, vowed to highlight the negative impact of the measures and respond firmly if necessary.
Canadians will stand up strongly and firmly if we need to.
Trump also introduced new regional standards requiring steel and aluminium imports to be “melted and poured” or “smelted and cast” within North America. The move aims to curb imports of minimally processed Chinese and Russian metals that circumvent existing tariffs.
While China exports minimal steel directly to the US, it is blamed for global overcapacity, which the US claims forces other countries to export more and facilitates the transshipment of Chinese steel through third countries.
