U.S. President Donald Trump is set to impose a 25% tariff on steel and aluminum imports starting Monday, triggering retaliatory threats from Europe and a warning from China about the negative consequences of a trade war. Trump announced the decision during a flight aboard Air Force One on Sunday, stating that the tariffs would apply to “any steel coming into the United States” and would also affect aluminum imports.
Trump had previously implemented similar tariffs during his 2017-2021 presidency in an effort to protect U.S. industries, which he claimed faced unfair competition from Asian and European nations.
While the European Commission stated on Monday that it had not yet received official notification of the tariffs, French Foreign Minister Jean-Noel Barrot confirmed that the European Union would retaliate, pledging to “replicate” any tariffs imposed by the U.S. “We will react to protect the interests of European businesses, workers, and consumers from unjustified measures,” the European Commission stated.
Canada, the largest source of U.S. steel and aluminum imports, could also face tariffs, as could Brazil, Mexico, and South Korea, major suppliers of steel to the U.S. Around 25% of European steel exports go to the U.S., and consultants Roland Berger warned that tariffs would hurt the European sector. German Economy Minister Robert Habeck, who also serves as vice chancellor, said that a tariff conflict would only create losers but emphasized Europe’s readiness to respond to unilateral trade restrictions “in a united and determined manner.”
Trump also announced that he would impose “reciprocal tariffs” that would match the rates charged by other countries on U.S. products. He is expected to make a detailed announcement on the new tariffs on Tuesday or Wednesday. Trump has previously used tariffs as leverage against trade partners such as China, Mexico, and Canada, and has threatened similar measures against the European Union.
Following his imposition of tariffs on China, Trump has seen Beijing retaliate with tariffs on $14 billion worth of U.S. goods. China’s tariffs on U.S. products, including coal and liquefied natural gas, will take effect on Monday. Meanwhile, the U.S. tariffs on Chinese goods amount to $525 billion.
China’s Foreign Ministry reiterated on Sunday that there are “no winners” in a trade or tariff war.
Trump has also signaled that tariffs on the EU are forthcoming, but French President Emmanuel Macron has vowed to challenge Trump’s financial threats to Europe, advocating for the U.S. to focus its trade efforts on China instead. Macron warned that European tariffs would lead to increased costs and inflation in the U.S.
In a meeting with Japanese Prime Minister Shigeru Ishiba, Trump also threatened tariffs on Japanese goods unless Tokyo works to reduce the U.S. trade deficit with Japan to zero. The U.S. trade deficit hit nearly $920 billion last year.
Despite promising a “golden age” for the U.S., Trump has acknowledged that American consumers may feel the economic impact of his tariff policies, despite claims that foreign exporters would bear the brunt of the costs. However, experts generally disagree with this assessment.
Trump has previously used tariffs to push broader policy goals, such as when he threatened Colombia with tariffs over the return of U.S. military planes carrying deported migrants. After a standoff, Colombia backed down.
