The brewing tensions between the European Union and the United States have escalated once again, as U.S. President Donald Trump announced sweeping tariffs on all steel and aluminum imports.
The move, which raises tariffs to 25% without exemptions, has sparked fresh fears of a trade war, prompting a strong response from European Commission President Ursula von der Leyen.
In a firm statement on Tuesday, von der Leyen expressed deep regret over the U.S. decision, emphasizing that tariffs ultimately hurt businesses and consumers alike. She vowed that the EU would take “firm and proportionate countermeasures” to safeguard its economic interests, though she did not outline specific actions.
The tariffs, set to take effect on March 4, mark a significant shift in U.S. trade policy, reviving tensions that had previously been put on pause. Back in 2018, Trump imposed similar tariffs, triggering EU countermeasures on American goods such as bourbon, motorcycles, and orange juice.
However, these retaliatory tariffs were later suspended under a trade truce reached with President Joe Biden. Now, with Trump’s latest move, the EU may be forced to reactivate its own tariffs, potentially reigniting a full-scale trade dispute.
EU Trade Chief Maros Sefcovic criticized the U.S. decision, calling it a “lose-lose scenario” and confirming that the European Commission is currently evaluating the scope of the measures and an appropriate response.
The EU’s 27 member states are set to discuss their collective strategy during a video conference of trade ministers on Wednesday.
For European steel producers, the new tariffs present another challenge in an already difficult market. Over the past decade, EU steel exports to the U.S. have averaged around €3 billion ($3.1 billion) annually.
However, export volumes have already declined significantly—from 3.2 million tons to just 2.2 million tons between 2019 and 2024—due to previous U.S. trade restrictions.
One of the biggest concerns for the industry is the potential redirection of global steel exports. With the U.S. now imposing strict tariffs, the 15 million tons of steel imported last year from non-EU countries could be diverted to the European market, flooding the region with excess supply and driving prices down.
Trump’s tariff announcement has already sent shockwaves through global financial markets. Investors, fearing increased economic uncertainty, have turned to gold as a safe-haven asset, pushing the precious metal to a record high of $2,942.70 in early trading on Tuesday.