Maps
Magazine

WORLD NEWS

EU Warns of Countermeasures Against Trump's Metal Tariffs
The EU vows "firm and proportionate countermeasures" after Trump's decision to impose 25% tariffs on steel and aluminum imports. Trade war fears rise as Canada also signals a strong response.
ND
by News Desk
2025-02-11
EU Warns of Countermeasures Against Trump's Metal Tariffs

The European Union has warned of "firm and proportionate countermeasures" following U.S. President Donald Trump's decision to impose 25% tariffs on steel and aluminum imports, stoking fears of a global trade war.

The new tariffs, set to take effect on March 4, will eliminate country-specific exceptions and quota deals, impacting key U.S. trading partners including Canada, Brazil, Mexico, and South Korea.

Trump’s Tariff Policy: No Exceptions

"It's 25% without exceptions or exemptions. That's all countries, no matter where it comes from," Trump announced on Monday. He further hinted at reciprocal tariffs on other sectors, including cars, semiconductors, and pharmaceuticals.

Asked about potential retaliation from affected nations, Trump responded, "I don't mind."

EU and Canada Push Back

European Commission President Ursula von der Leyen condemned the move, calling tariffs "bad for business and worse for consumers."

"Unjustified tariffs on the EU will not go unanswered — they will trigger firm and proportionate countermeasures. The EU will act to safeguard its interests," von der Leyen stated.

Though specific countermeasures were not outlined, reactivating the EU's 2018 tariffs on U.S. products such as bourbon, motorcycles, and orange juice remains a possibility.

Canadian Prime Minister Justin Trudeau also criticized the tariffs, calling them "unacceptable." Speaking at the Paris Artificial Intelligence Summit, Trudeau said Canada would respond "firmly and clearly" if necessary.

"Canadians will stand up strongly and firmly if we need to," Trudeau emphasized.

Global Market Reactions

The announcement sent gold prices to a record high of $2,942.70 per ounce in Asian trading, while shares of U.S. steel and aluminum companies surged. Conversely, Asian and European steelmakers faced heavy losses.

Geopolitical and Trade Implications

The new tariffs also introduce regional production requirements, mandating that steel be "melted and poured" and aluminum "smelted and cast" within North America. The move aims to curb imports of minimally processed Chinese and Russian metals that circumvent existing U.S. trade restrictions.

Despite China exporting minimal steel directly to the U.S., Washington claims that China's subsidized production drives excess global steel capacity, forcing other countries to ramp up exports and transship Chinese steel to bypass tariffs.

As tensions rise, the EU and other affected countries are likely to seek coordinated responses to mitigate the economic fallout. The potential for a full-scale trade war looms large, with diplomatic negotiations expected to intensify in the coming weeks.

 
Tagged:

US

Canada

Donald trump

EU

TradeWar

Tariffs
Share News: