According to Bloomberg, the European Union swiftly issued a strong response after U.S. President Donald Trump announced on February 10 that the U.S. would impose a uniform 25% tariff on steel and aluminum imports from all other countries. The EU declared that it would take "firm and reciprocal" countermeasures, marking a sudden escalation in trade tensions between the U.S. and the EU.
On February 11, European Commission President Ursula von der Leyen issued a statement expressing deep regret over the U.S. decision to impose tariffs on steel and aluminum imports from the EU. She emphasized, "The EU will take firm and proportionate countermeasures." Von der Leyen further stated, "The EU will resolutely defend its economic interests and protect our workers, businesses, and consumers." Reports indicate that the EU has prepared multiple lists of retaliatory tariffs targeting U.S. products and may swiftly reinstate tariffs imposed during Trump's first term. EU trade ministers are set to hold an emergency video meeting on February 12 to discuss specific actions.
German Chancellor Olaf Scholz also underscored on February 11, "If the U.S. leaves no room for compromise, the EU will respond with unity. As one of the world's largest markets with 450 million consumers, the EU has the strength to take action."
According to two announcements released by the White House on the evening of February 10, the new U.S. steel and aluminum tariffs will take effect on March 12. While signing the tariff order, Trump claimed that the move would "revitalize American manufacturing and create jobs" and warned that tariff rates could be raised further in the future. This policy continues Trump's controversial 2018 decision to impose tariffs on $7 billion worth of EU steel and aluminum imports under the pretext of "national security." At that time, the EU retaliated with tariffs on iconic American products such as Harley-Davidson motorcycles and Levi's jeans.
The U.S. and the EU reached a temporary truce in 2021, under which the U.S. lifted some measures and introduced a tariff-rate quota system, allowing limited duty-free imports while imposing tariffs on quantities exceeding the quota. In return, the EU suspended all its retaliatory measures. However, EU officials now indicate that the tariff suspension, originally set to expire at the end of March, could be lifted earlier.
Ignacio Garcia Bercero, a researcher at the Bruegel think tank and a former senior EU negotiator, criticized the U.S. tariffs as "blatant protectionism and economic self-sabotage." He urged the EU to respond swiftly and precisely, stating, "The EU must make the cost of such tariff actions clear to the U.S." He suggested that the EU first reinstate its existing countermeasures before expanding its retaliation list based on the impact of the new U.S. tariffs.
François-Philippe Champagne, Canada's Minister of Innovation, Science, and Industry, strongly condemned the U.S. tariffs on Canadian steel and aluminum, calling them completely unjustified. He emphasized that Canada's steel and aluminum industries are crucial to key U.S. sectors such as defense, shipbuilding, energy, and automotive manufacturing.
India, another supplier of steel to the U.S., is also seeking exemptions. The Indian Steel Association, a lobbying group, has urged the government to take action to secure relief from U.S. trade restrictions during Indian Prime Minister Narendra Modi's visit to the U.S. later this week.
In 2022, the EU exported 3.8 million metric tons of steel and 289,000 metric tons of aluminum to the U.S. Meanwhile, the U.S. remains heavily reliant on aluminum imports to meet domestic demand. According to Morgan Stanley, more than 80% of the U.S.'s net aluminum imports in 2023 came from Canada, the UAE, and China. Bloomberg economists warn that if negotiations fail to lift the U.S. tariffs before the March 12 deadline, retaliatory measures from multiple countries could trigger a chain reaction.
Notably, Trump's move comes at a critical moment in his push for an "American steel industry revival" strategy, a key issue in industrial states such as Ohio and Pennsylvania, where manufacturing jobs have been declining.
Trump has also hinted that he may announce tariffs on the automotive and semiconductor industries in the coming days, further expanding the scope of the trade conflict. This dispute underscores the renewed pressure on the global trade system. As the March deadline approaches, the world is closely watching the next developments in this geopolitical standoff.
