The European Union retaliated to Donald Trump’s imposition of 25 per cent tariffs on steel and aluminium within hours of their entry into force. The move escalated a trade war that has rattled financial markets and threatens the global economy.
The European Commission said its measures would affect US goods worth up to 26 billion euros, the same amount as US tariffs on European exports. The measures will take effect in April, allowing time for negotiations with Washington.
European Commission President Ursula von der Leyen deplored the US decision and said the tariffs “harm businesses and further harm consumers.”
“These tariffs disrupt supply chains. They create uncertainty for the economy. Jobs are at stake. Prices will rise,” von der Leyen emphasised. However, she added: “The European Union must act to protect consumers and businesses.”
Raising tariffs on steel and aluminium imports was the final straw
After Donald Trump’s tariffs on US steel and aluminium imports came into force on Wednesday, Brussels retaliated. This came as the US president continued to pursue his protectionist trade policies despite growing concerns about the risk of a domestic recession.
Brussels reinstated measures that were introduced during Trump’s first term, including tariffs on iconic American goods such as bourbon, jeans and Harley-Davidson motorbikes. Those measures will come into effect on April 1.
Further measures will target manufactured goods and agricultural products, including poultry and beef. They still need to be approved by EU countries and will come into force in mid-April.
Donald Trump announced the tariffs last month, tearing up agreements his predecessor Joe Biden had made with US trading partners. Those agreements allowed certain amounts of steel and aluminium to be imported into the country without tariffs.
US administration officials said the move was a response to “foreign players” who they said were responsible for a “surge in exports” of metals to America, undermining the position of local producers.
Donald Trump also extended tariffs on metals to a wide range of products containing steel and aluminium, including tennis rackets, exercise bikes, furniture and air conditioners. The move is part of a wider package of protectionist measures that Donald Trump has introduced since taking office in January.
