European Commission President Ursula von der Leyen on Tuesday vowed “firm and proportionate countermeasures” in response to U.S. President Donald Trump’s decision to impose tariffs on all steel and aluminium imports, escalating fears of a trade war.
Trump signed proclamations late on Monday to raise tariffs on all steel and aluminium imports to 25% without exceptions or exemptions. A White House official said that the measures would take effect on March 4.
Von der Leyen said in a statement that she deeply regretted the U.S. decision, adding tariffs were taxes that were bad for business and worse for consumers. EU steel exports to the U.S. have averaged about 3 billion euros ($3.10 billion) a year over the past decade.
“Unjustified tariffs on the EU will not go unanswered – they will trigger firm and proportionate countermeasures. The EU will act to safeguard its interests,” she said.
Von der Leyen did not provide details of the response. One option would be to reactivate the tariffs the EU imposed in 2018 that were suspended under a truce agreed between von der Leyen and former U.S. President Joe Biden.
The EU tariffs on U.S. products such as bourbon, motorcycles and orange juice are currently suspended until the end of March.
EU trade chief Maros Sefcovic described the U.S. decision in a speech in the European Parliament as a “lose-lose scenario”.
He added that the Commission was now assessing the scope of the U.S. measures and the appropriate EU response.
Trump’s latest trade salvo pushed gold prices to a record high on Tuesday on safe-haven demand, with the precious metal hitting $2,942.70 in early trading.
The Commission is set to hear the views of its 27 EU members on the bloc’s response at a video conference of European Union trade ministers convened for Wednesday.
The steel and aluminium tariffs imposed by Trump in 2018 were suspended under his successor Joe Biden. However, they were replaced with quotas.
EU steel producers have seen export volumes to the United States drop by about 1 million tonnes to 2.2 million in 2019-2024.
A major industry concern is that the 15 million tonnes the United States imported last year from countries other than the EU will be redirected towards the bloc if tariffs are imposed.
