The European Commission (EC) on Monday, the 10th of January, pledged to respond to US President Donald Trump’s threat to impose 25% tariffs on steel and aluminium imports, condemning them as “unlawful” and “counterproductive”, reports Politico.
“Imposing tariffs would tax US citizens, increase costs for businesses and fuel inflation. In addition, tariffs increase economic uncertainty and hamper the efficiency and integration of global markets,” the Commission said in a statement.
Trump told reporters on Sunday that he would announce the tariffs on Monday and further “reciprocal” tariffs on Tuesday.
The tariffs are likely to provoke a strong reaction from Brussels. The previous dispute over steel and aluminium started in 2018 when Trump imposed tariffs that were later suspended under Biden. EU retaliatory tariffs on bourbon whiskey, motorcycles and cranberry juice were suspended during the Joe Biden administration but may be resumed in March.
DECLARING THE TARIFFS UNLAWFUL PAVES THE WAY FOR THE EU TO REACT ACCORDING TO ITS RULEBOOK, INCLUDING BY CHALLENGING THEM IN THE WORLD TRADE ORGANISATION OR BY INTRODUCING SAFEGUARD MEASURES.
Meanwhile, France has already urged Brussels to respond to Trump’s threats, with French Foreign Minister Jean-Noël Barrot telling the EC that “the time has come” for retaliatory measures. “We should not hesitate in defending our interests,” he said.
Moments before Trump’s pledge to hit steel and aluminium imports, German Chancellor Olaf Scholz said the EU could react “within the hour” if Trump implements his tariff plans.
German Economy Minister and Green chancellor-designate Robert Habeck said on Monday that “the export-oriented German economy benefits more than any other from open markets”.
“That is why I view the announcements on tariffs with concern,” he said after a telephone conversation with EU trade chief Maroš Šefčovič.
Most US steel and aluminium imports come from Mexico and Canada, so these two countries are most at risk from Trump’s 25% tariff. According to the US Department of Commerce, in 2023, the US mainly imported steel from Canada, Mexico and Brazil. Canada, the United Arab Emirates and China are the largest suppliers of aluminium.
However, the tariffs that Washington promises to impose as early as Tuesday will hit specific sectors, including the EU automotive industry as well as agriculture and pharmaceuticals.
Trump’s Vice President J.D. Vance and EC President Ursula von der Leyen are expected to meet in Paris on Tuesday for an AI summit, the first official meeting between the two administrations since Trump took office as US President.