EU Responds Firmly to US Steel and Aluminium Tariffs
European Commission signals countermeasures against Trump's 25% tariffs on imports of steel and aluminium.
The European Commission has announced plans to retaliate against newly imposed tariffs by the United States on steel and aluminium imports, with Commission President Ursula von der Leyen stating that the EU will implement 'firm and proportionate countermeasures'.
This response follows President Donald Trump’s executive order, enacted on March 12, that imposes a 25% tariff on all steel and aluminium imported into the US.
President Trump justified the tariffs by asserting the need for steel and aluminium to be produced domestically, stating, 'Our nation requires steel and aluminium to be made in America, not in foreign lands.' He suggested that the tariffs would encourage international companies to shift their production to the US.
The tariffs are projected to have significant repercussions for Canada and Mexico, the US's leading suppliers of both metals.
In 2022, Canada accounted for a substantial 60% of US aluminium imports and was also the top supplier of steel.
The European Steel Association, known as Eurofer, has warned that Trump’s protective measures could escalate existing difficulties within the EU steel sector, which is already grappling with high energy costs and intensified competition from Chinese exports.
Eurofer characterized the tariffs as a 'radical escalation' of trade tensions from the previous administration, predicting that they could worsen the economic environment for EU steel manufacturers.
Between 2014 and 2023, total exports of finished steel from the EU saw a decline from 29 million metric tonnes to 16 million metric tonnes.
Simultaneously, the average exports of finished steel from the EU to the US fell from 3.3 million to 2.2 million tonnes during the same period.
In a broader context, Trump indicated that he might impose 'reciprocal tariffs' on countries that institute their own duties against US imports, with an announcement expected later this week.
The EU has expressed skepticism regarding the justification for these potential measures.
A Commission spokesperson stated, 'We believe that none of the potential measures outlined by the US administration to date are justified.'
German Chancellor Olaf Scholz emphasized the EU's collective intention to respond cohesively to US tariffs, noting, 'As the largest market in the world with 450 million citizens and residents, we have the strength to do so.' He indicated that any trade escalation would be a concern for both parties involved, stating that 'Trade wars always end up costing both sides prosperity.'
The American Chamber of Commerce to the EU (AmCham EU) criticized the tariffs and advocated for the EU's permanent exemption from such duties.
They highlighted the necessity for both Washington and Brussels to collaborate in addressing the fundamental issue of global overcapacity stemming from unfair trading practices in other countries, implicitly pointing towards China.
This latest tariff imposition by the Trump administration revives memories of a previous trade dispute that occurred during his first term, when similar duties were imposed and prompted retaliatory tariffs from the EU targeting a variety of American products, including iconic brands such as Harley-Davidson motorcycles and bourbon.
The European Commission's response is expected to be forthcoming within a few weeks, as officials assess the situation following Trump's recent tariffs.
This response follows President Donald Trump’s executive order, enacted on March 12, that imposes a 25% tariff on all steel and aluminium imported into the US.
President Trump justified the tariffs by asserting the need for steel and aluminium to be produced domestically, stating, 'Our nation requires steel and aluminium to be made in America, not in foreign lands.' He suggested that the tariffs would encourage international companies to shift their production to the US.
The tariffs are projected to have significant repercussions for Canada and Mexico, the US's leading suppliers of both metals.
In 2022, Canada accounted for a substantial 60% of US aluminium imports and was also the top supplier of steel.
The European Steel Association, known as Eurofer, has warned that Trump’s protective measures could escalate existing difficulties within the EU steel sector, which is already grappling with high energy costs and intensified competition from Chinese exports.
Eurofer characterized the tariffs as a 'radical escalation' of trade tensions from the previous administration, predicting that they could worsen the economic environment for EU steel manufacturers.
Between 2014 and 2023, total exports of finished steel from the EU saw a decline from 29 million metric tonnes to 16 million metric tonnes.
Simultaneously, the average exports of finished steel from the EU to the US fell from 3.3 million to 2.2 million tonnes during the same period.
In a broader context, Trump indicated that he might impose 'reciprocal tariffs' on countries that institute their own duties against US imports, with an announcement expected later this week.
The EU has expressed skepticism regarding the justification for these potential measures.
A Commission spokesperson stated, 'We believe that none of the potential measures outlined by the US administration to date are justified.'
German Chancellor Olaf Scholz emphasized the EU's collective intention to respond cohesively to US tariffs, noting, 'As the largest market in the world with 450 million citizens and residents, we have the strength to do so.' He indicated that any trade escalation would be a concern for both parties involved, stating that 'Trade wars always end up costing both sides prosperity.'
The American Chamber of Commerce to the EU (AmCham EU) criticized the tariffs and advocated for the EU's permanent exemption from such duties.
They highlighted the necessity for both Washington and Brussels to collaborate in addressing the fundamental issue of global overcapacity stemming from unfair trading practices in other countries, implicitly pointing towards China.
This latest tariff imposition by the Trump administration revives memories of a previous trade dispute that occurred during his first term, when similar duties were imposed and prompted retaliatory tariffs from the EU targeting a variety of American products, including iconic brands such as Harley-Davidson motorcycles and bourbon.
The European Commission's response is expected to be forthcoming within a few weeks, as officials assess the situation following Trump's recent tariffs.
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