Donald Trump sparked a tariff trade war as the European Union vowed “firm and proportionate” retaliation against new levies on steel imports into the US. European Commission President Ursula von der Leyen said on Tuesday that the EU would not let the decision by Trump to impose import tariffs on European steel and aluminium go unanswered. “I deeply regret the US decision to impose tariffs on European steel and aluminum exports,” she said in a post on X.
“Unjustified tariffs on the EU will not go unanswered.”. She pledged a “firm and proportionate” response. European Union trade commissioner Maros Sefcovic said Trump will be fuelling inflation with his move to resume tariffs on aluminium and steel imports, which he stressed would also hit US consumers. Mr Sefcovic said the tariffs were a “lose-lose” scenario, but the EU remained committed to finding a mutually beneficial solution with the United States as soon as possible.
Chancellor Rachel Reeves believes “there is a deal to be done” as Britain seeks to avoid the new tariffs. Lord Mandelson, Britain’s ambassador to Washington, believes Trump can be “influenced” through “direct and private” talks. Trump substantially raised tariffs on steel and aluminum imports on Monday to a flat 25% “without exceptions or exemptions” in a move he hopes will aid the struggling industries in the United States but which also risks sparking a multi-front trade war.
A White House official confirmed the measures would take effect on March 4. The tariffs will apply to millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the US duty free under the carve-outs. The move will simplify tariffs on the metals “so that everyone can understand exactly what it means,” Trump said. “It’s 25% without exceptions or exemptions. That’s all countries, no matter where it comes from, all countries.”.
As he signed the order at the White House, the US president said he would follow Monday’s action with announcements about reciprocal tariffs on all countries that impose duties on US goods over the next two days, and said he was also looking at tariffs on cars, semiconductors and pharmaceuticals. Asked about threats of retaliation, Trump said: “I don’t mind.”. US data showed aluminum smelters produced just 670,000 metric tons of the metal last year, down from 3.7 million in 2000. Plant closures in recent years including in Kentucky and Missouri have left the country largely reliant on imports.
Steel imports accounted for about 23% of American steel consumption in 2023, according to American Iron and Steel Institute data, with Canada, Brazil and Mexico the largest suppliers. Trump had already threatened to impose tariffs of 25% on all imports from America’s two largest trading partners, Canada and Mexico, saying they must do more to halt the flow of drugs and migrants across the U.S. border. After some border security concessions, Trump paused the tariffs until March 1.
