The European Commission on Monday pledged to react to U.S. President Donald Trump’s threatened imposition of 25 percent tariffs on steel and aluminum, slamming them as “unlawful” and “counterproductive.” 

“By imposing tariffs, the U.S. would be taxing its own citizens, raising costs for business, and fueling inflation. Moreover, tariffs heighten economic uncertainty and disrupt the efficiency and integration of global markets,” the Commission said in a statement.

Trump, flying to the Superbowl on Sunday, told reporters he would announce the tariffs on Monday and further “reciprocal” tariffs on Tuesday.

Imposing the tariffs is likely to trigger a forceful reaction from Brussels. Steel and aluminum are at the center of an unresolved dispute between Washington and Brussels dating back to 2018, when Trump imposed tariffs that were later suspended.

The EU’s retaliatory tariffs on bourbon whiskey, motorbikes and cranberry juice were paused during the Joe Biden administration. The truce is expected to lapse on the European side at the end of March. 

Labelling the tariffs as unlawful is paving the way for the EU to respond according to its usual rulebook, including by launching a challenge at the World Trade Organization or deploying safeguard measures. 

France, meanwhile, already urged Brussels to react to Trump’s threats, with French Foreign Minister Jean-Noël Barrot telling the European Commission that “the time has come.”

The European Commission “has assured us that it would have been ready to pull it out when the time came. The time has come,” he said. “We should not hesitate when defending our interests.”

Just moments before Trump vowed to hit steel and aluminum imports, German Chancellor Olaf Scholz said that the EU can act “within an hour” if Trump makes good on his tariff promises.

Robert Habeck,  Germany's economy minister and challenger as chancellor candidate from the Greens, said Monday that “the export-oriented German economy benefits more than almost any other from open markets.”

"I therefore view the tariff announcements with concern," he said, following a phone call with the EU trade chief Maroš Šefčovič.

The bulk of U.S. steel and aluminum imports come from Mexico and Canada, leaving those two countries mostly at risk of Trump’s imposition of the 25 percent levy. 

In 2023, the U.S. mostly imported its steel from Canada, Mexico and Brazil, according to the U.S. Department of Commerce. Canada, the United Arab Emirates and China are its biggest aluminum suppliers. 

However, the reciprocal tariffs flouted by Washington as soon as Tuesday are set to put specific industries in the crosshairs, including the EU’s car industry as well as its agriculture and pharmaceutical sectors. 

Trump’s vice-president J.D. Vance and European Commission President Ursula von der Leyen are expected to meet on Tuesday in Paris on the margin of an AI summit, marking the first official meeting between the two administrations since Trump took over as U.S. president. 

Hans von der Burchard contributed reporting.

Politico

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