The European Commission fired back on Monday after U.S. President Donald Trump threatened to impose 25% tariffs on steel and aluminum, calling the move “unlawful” and “counterproductive.” The Commission argued that the tariffs would raise costs for American businesses, drive up inflation, and create economic uncertainty, disrupting global markets.
Trump, on his way to the Super Bowl, announced that the tariffs would be implemented on Monday, followed by more “reciprocal” tariffs on Tuesday. This sets the stage for a strong response from Brussels, which has been in a long-standing dispute with Washington over these tariffs since 2018, when Trump first imposed them, only for them to be later suspended.
The EU had paused retaliatory tariffs on goods like bourbon whiskey, motorcycles, and cranberry juice during the Biden administration, but that truce will likely end in March. By labeling the tariffs as unlawful, the EU is paving the way for potential actions, including a challenge at the World Trade Organization or other safeguard measures.
France wasted no time urging Brussels to act. Foreign Minister Jean-Noël Barrot told the European Commission, “The time has come,” and emphasized the need to defend European interests. German Chancellor Olaf Scholz also warned that the EU could retaliate “within an hour” if Trump follows through with his threat.
Germany’s Economy Minister, Robert Habeck, expressed concern about the tariff announcements, noting that the country’s export-driven economy thrives on open markets.
Most U.S. steel and aluminum imports come from Mexico and Canada, meaning they are the primary targets of the 25% tariff. However, the reciprocal tariffs, expected to target specific sectors like the EU’s car industry, agriculture, and pharmaceuticals, could still have a significant impact.
Trump’s Vice President J.D. Vance and EU Commission President Ursula von der Leyen are set to meet Tuesday in Paris, marking the first official meeting between the two administrations since Trump’s presidency began.
