The 27-nation European Union and Canada quickly vowed Tuesday to stand firm against U.S. President Donald Trump’s move to impose 25% tariffs on their steel and aluminum exports, verbal sparring that could lead to a full-blown trade war between the traditionally allied nations.
“The EU will act to safeguard its economic interests,” European Commission President Ursula von der Leyen said in a statement. “Tariffs are taxes — bad for business, worse for consumers.
“Unjustified tariffs on the EU will not go unanswered — they will trigger firm and proportionate countermeasures,” she said.
Trump said the steel and aluminum tariffs would take effect on March 12. In response, EU officials said they could target such U.S. products as bourbon, jeans, peanut butter and motorcycles, much of it produced in Republican states that supported Trump in his election victory.
The EU scheduled a first emergency video on Wednesday to shape the bloc’s response.
Prime Minister Donald Tusk of Poland, which holds the EU presidency, said it was “important that everyone sticks together. Difficult times require such full solidarity.”
Canadian Prime Minister Justin Trudeau said during a conference on artificial intelligence in Paris that Trump’s steel and aluminum levy would be “entirely unjustified,” and that “Canadians will resist strongly and firmly if necessary.”
Von der Leyen is meeting Tuesday with U.S. Vice President JD Vance in Paris, where they are expected to discuss Trump’s tariff orders.
“We will protect our workers, businesses and consumers,” she said in advance of the meeting.
Trump imposed the steel and aluminum tariff to boost the fortunes of U.S. producers.
“It’s a big deal,” he said. “This is the beginning of making America rich again.”
Billionaire financier Howard Lutnick, Trump’s nominee to lead the Commerce Department, said the tariff on the imports could bring back 120,000 U.S. jobs.
As he watched Trump sign an executive order, Lutnick said, “You are the president who is standing up for the American steelworker, and I am just tremendously impressed and delighted to stand next to you.”
Trump’s proclamations raised the rate on aluminum imports to 25% from the previous 10% that he imposed in 2018 to aid the struggling sector. And he restored a 25% tariff on millions of tons of steel and aluminum imports.
South Korea — the fourth-biggest steel exporter to the United States, following Canada, Brazil and Mexico — also vowed to protect its companies’ interests but did not say how.
South Korean acting President Choi Sang-mok said Seoul would seek to reduce uncertainties “by building a close relationship with the Trump administration and expanding diplomatic options.”
The spokesperson of British Prime Minister Keir Starmer said London was “engaging with our U.S. counterparts to work through the detail” of the planned tariffs.
In Monday’s executive order, Trump said “all imports of aluminum articles and derivative aluminum articles from Argentina, Australia, Canada, Mexico, EU countries and the UK” would be subject to additional tariffs.
The same countries are named in his executive order on steel, along with Brazil, Japan and South Korea.
“I’m simplifying our tariffs on steel and aluminum,” Trump said. “It’s 25% without exceptions or exemptions.”
Bernd Lange, the chair of the European Parliament’s international trade committee, warned that previous trade measures against the U.S. were only suspended and could legally be easily revived.
“When he starts again now, then we will, of course, immediately reinstate our countermeasures,” Lange told rbb24 German radio. “Motorcycles, jeans, peanut butter, bourbon, whiskey and a whole range of products that of course also affect American exporters” would be targeted, he said.
In Germany, the EU’s largest economy, Chancellor Olaf Scholz told parliament that “if the U.S. leaves us no other choice, then the European Union will react united.”
But he warned, “Ultimately, trade wars always cost both sides prosperity.”
The European steel industry expressed concerns about the Trump tariffs.
“It will further worsen the situation of the European steel industry, exacerbating an already dire market environment,” said Henrik Adam, president of the European Steel Association.
He said the EU could lose up to 3.7 million tons of steel exports. The United States is the second-largest export market for EU steel producers, representing 16% of the total EU steel exports.
“Losing a significant part of these exports cannot be compensated for by EU exports to other markets,” Adam said.
Some material in this report came from The Associated Press and Agence France-Presse.