EU Flays US for Imposing 25% Tariffs on Steel and Aluminium

Stung by the US President Donald Trump’s decision to impose 25% tariffs on European steel and aluminium exports, the European leaders on Tuesday retorted saying that the EU nations will act to safeguard its economic interests.

European Union (EU) President Ursula von der Leyen said that she deeply regretted the US decision as tariffs were taxes, which was bad for business and worse for consumers.

“Unjustified tariffs on the EU will not go unanswered and they will trigger firm and proportionate countermeasures. The EU will act to safeguard its economic interests and protect our workers, businesses and consumers,” she said in a statement.

In a related development, German Chancellor Olaf Scholz too warned that the EU will jointly retaliate if Trump moved forward with imposing tariffs on European products.

Addressing lawmakers in parliament, Scholz criticized the US President’s decision to impose tariffs on European products, beginning with steel and aluminium, according to media reports.

“If the US leaves us no other choice, then the European Union countries will react as one. As the largest market in the world with 450 million citizens, we have the strength to do so,” he said.

Scholz expressed hope that the US administration would change its stance and avoid sparking a cycle of tariffs and counter-tariffs.

He said that trade wars always end up costing prosperity of both sides and the German government will take all steps to support German businesses through challenging times ahead.

Scholz also said that even without a trade war, the tough competition from the US, China and other emerging regions of the world will continue to put German’s economy under enormous pressure.

Canada Hits Back

Mark Carney, the frontrunner to replace outgoing Canadian Prime Minister Justin Trudeau as leader of the Liberal Party, said that Trump wants Canada to lose its cool.

In a post on X, Carney said: “But we need to stay united, with the right response. In the short term, Canada needs to manage foreign trade threats with dollar-for-dollar tariffs and support for our critical steel and aluminium workers.”

The US government data showed that the US imported about $49 billion worth of steel and aluminium in 2024.

According to the US International Trade Administration, Canada is the biggest supplier of steel, followed by Mexico, Brazil, South Korea, Germany and Japan. Canada is also the largest exporter of aluminium, with other major suppliers including the UAE, South Korea and China.

It may be mentioned that the US President on Monday signed an executive order at the Oval Office to impose 25% tariffs on all steel and aluminum imports into the country without any exceptions or exemptions. The US administration was also considering additional tariffs on pharmaceuticals, computer chips and automobiles, he said.

“This is a big deal, the beginning of making America rich again. All foreign steel and aluminum imports, regardless of the country of origin, will be subject to the tariffs,” he said. However, it was not clear whether the tariffs would go into effect March 4 or March 12.

Australia Snubbed

Hours of Australian Prime Minister Anthony Albanese, who spoke with the US President, hoped that the tariffs will not touch them, the White House has accused Australia of violating a verbal agreement to curb aluminium exports.

Earlier in the day, Trump confirmed he was considering an exemption for Australia on steel and aluminium tariffs, citing the US’ trade surplus with its AUKUS partner.

In a statement, the White House officials accused Australia of reneging on a “verbal commitment to voluntarily restrain its aluminium exports to a reasonable level” since it was exempted from tariffs on aluminium imposed during Trump’s first term.