Brussels, Feb 12: European Union chief Ursula von der Leyen vowed on Tuesday that US tariffs on steel and aluminum “will not go unanswered”, adding that they will trigger tough countermeasures from the 27-nation bloc.
“The EU will act to safeguard its economic interests,” von der Leyen said in a statement in reaction to US President Donald Trump’s imposition of tariffs on steel and aluminum the previous day.
“Tariffs are taxes — bad for business, worse for consumers,” von der Leyen said. “Unjustified tariffs on the EU will not go unanswered — they will trigger firm and proportionate countermeasures.”
In Germany, home to the EU’s largest economy, Chancellor Olaf Scholz told parliament that “if the US leaves us no other choice, then the European Union will react united,” adding that “ultimately, trade wars always cost both sides prosperity”.
Trump is hitting foreign steel and aluminum with a 25% tax in the hope that they will give local producers relief from intense global competition, allowing them to charge higher prices. He imposed similar tariffs during his first presidency but the move damaged relations with key US allies and drove up costs for “downstream” manufacturers that buy steel and aluminum.
It is not clear what countermeasures would seek to apply, but officials and observers have said they would target Republican states and traditionally strong US exports.
After Trump imposed steel tariffs in 2018, the EU imposed counter-tariffs on US-made motorcycles, bourbon, peanut butter and jeans, among other items.
EU Commission vice-president Maroš Šefcovic said Tuesday that the tariffs are “economically counterproductive, especially given the deeply integrated production chains established through our extensive transatlantic trade and investment ties”.