European Commission President Ursula von der Leyen has issued a strong warning in response to U.S. President Donald Trump’s latest decision to impose tariffs on steel and aluminum imports. The move has reignited trade tensions, with the European Union (EU) considering firm countermeasures to protect its industries.
Trump’s Tariff Decision: What It Means
On Monday, Trump signed an order imposing a 25% tariff on all steel and aluminum imports, with no exemptions. A White House official confirmed that these tariffs will take effect on March 4. The move is seen as a direct hit on the EU, which has historically exported steel worth about €3 billion ($3.1 billion) annually to the U.S.
Von der Leyen strongly condemned the decision, stating that tariffs are harmful to both businesses and consumers. She emphasized that the EU will not let this action go unanswered, promising “firm and proportionate countermeasures” to safeguard European interests.
Will the EU Revive Its 2018 Tariffs?
One of the most likely responses from the EU is the reactivation of the tariffs it imposed in 2018, which were later suspended under a temporary truce with President Joe Biden. These tariffs targeted American products like bourbon, motorcycles, and orange juice. Currently, they remain on hold until the end of March, but with Trump’s latest move, they could be reinstated soon.
EU trade chief Maros Sefcovic called Trump’s decision a “lose-lose scenario” that could damage global trade. The European Commission is now assessing the full impact of the tariffs and will discuss a response with the 27 EU member states in a meeting scheduled for Wednesday.
A Ripple Effect on Global Markets
The announcement of the tariffs has already sent shockwaves through global markets. Investors have turned to safe-haven assets, pushing gold prices to a record high of $2,942.70 per ounce. Meanwhile, European steel producers are bracing for economic fallout, as they fear a significant decline in exports to the U.S.
In 2018, Trump’s tariffs on steel and aluminum caused major disruptions, prompting retaliatory measures from multiple trading partners, including the EU, Canada, and China. Although the Biden administration later replaced tariffs with a quota system, Trump’s latest move signals a return to his aggressive trade policies.
What’s Next?
The EU is expected to finalize its countermeasures in the coming weeks, with trade ministers meeting on Wednesday to discuss a coordinated response. Meanwhile, the global business community is watching closely, as escalating trade tensions could impact supply chains, pricing, and investment strategies worldwide.
With Trump back in action on trade policies, the stage is set for another major standoff between the U.S. and the EU. Will this trigger a full-scale trade war? Only time will tell.
