According to Bloomberg, after U.S. President Trump announced on February 10 that the United States would impose a unified 25% tariff on steel and aluminum imported from all other countries, the EU quickly responded strongly, saying it would adopt “firm and reciprocal” after U.S. President Donald Trump announced on February 10 that the United States would impose a unified 25% tariff on steel and aluminum imported from all other countries. The countermeasures mark a sudden rise in trade tensions between the United States and the European Union.
On February 11, European Commission President Ursula von der Leyen issued a statement saying: “I regret the United States’ decision to impose tariffs on steel and aluminum imported from the EU, and the EU will trigger a firm and proportional countermeasure.” Ursula von der Leyen der Leyen stressed in a statement: “The EU will firmly defend its economic interests and protect our workers, businesses and consumers.” It is reported that the EU has formulated multiple counter-tariff lists for U.S. products, which may be restarted quickly in the United States Tariff measures imposed on the United States during Trump’s first term. The EU Trade Minister will hold an emergency video conference on February 12 to discuss specific actions.
German Chancellor Olaf Scholz also emphasized on February 11: “If the United States does not leave room, the EU will react together. As one of the largest markets in the world with 450 million consumers, the EU has the strength to take action.”
New tariffs on U.S. steel and aluminum will take effect on March 12, according to two announcements issued by the White House later February 10. Trump declared when signing the tariff order that the move would “rejure U.S. manufacturing and create jobs” and threatened “more increase in tariff rates in the future.” This continues Trump’s controversial policy of taxing nearly $7 billion in EU steel and aluminum products on the grounds of “national security”. At that time, the EU had imposed counter-target tariffs on iconic American products such as Harley Motorcycles and Levitra jeans.
The U.S. and the EU reached a temporary ceasefire agreement in 2021, when the U.S. canceled some of its measures and introduced a tariff quota agreement that would impose tariffs on metals beyond that quota, while the EU freezes all its restrictions on the U.S. measure. However, EU officials have revealed that the tariff suspension order originally scheduled to expire at the end of March may be lifted in advance.
“This is a naked protectionism and economic self-harm. The EU needs to fight back quickly and accurately to let the United States understand the price of tariff actions.” He suggested that the EU first restore the existing anti-anti-
and then formulate an extended list based on the impact of new US tariffs.
Canadian Minister of Innovation, Science and Industry François-Philippe Champagne strongly criticized that it is completely unreasonable for the United States to impose steel and aluminum tariffs on Canada, and emphasized that Canada’s steel and aluminum products support key U.S. defense, shipbuilding, energy and automobiles. industry.
India is the U.S. steel supplier, while the lobbyist Indian Steel Association calls on the government to take action to ensure that India can obtain exemptions from U.S. trade restrictions during Prime Minister Narendra Modi’s visit this week.
It is reported that in 2022, the EU exported 3.8 million metric tons of steel and 289,000 metric tons of aluminum to the United States. The United States also relies heavily on aluminum imports to meet domestic demand. According to data from Morgan Stanley, net aluminum imports in 2023 will reach more than 80%, mainly from Canada, the UAE and China. Bloomberg economists warn that if negotiations fail to lift U.S. steel and aluminum tariffs before March 12, countermeasures from countries may trigger a chain reaction.
It is worth noting that Trump’s move is at a critical moment in his promotion of the “Revival of the US Steel Industry” strategy. This issue has important political significance in industrial states such as Ohio and Pennsylvania. Currently, industrial manufacturing jobs are declining in these states.
Trump also hinted that he would announce tariffs on industries such as automobiles and semiconductors in the next two days, further expanding the line of the trade war. This dispute highlights the severe test of the global trade system once again. As the March deadline approaches, the world is closely monitoring the next direction of this great power game.