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Trump's 25% tariff on steel, aluminum stirs reprisal in Europe, Canada

  • By Al Mayadeen English
  • Source: News websites
  • 11 Feb 2025 15:53
4 Min Read

Trump's tariffs are escalating tensions into a potential trade war with the countries he's imposing them on, with EU officials and the Canadian PM promising retaliatory measures.

  • x
  • Unimact’s steel line worker preparing critical steel components for solar power generation projects in the southwestern U.S. Jun 18, 2024  (AP)
    Unimact’s steel line worker preparing critical steel components for solar power generation projects in the southwestern US, on June 18, 2024 (AP)

The European Union, Canada, and Germany have kicked back at Trump following his decision to impose tariffs on all steel and aluminum imports, further fueling fears of a trade war.

The EU said it would respond with "firm and proportionate countermeasures" to Trump's decision.

The US president signed proclamations late on Monday raising the US tariff rate on aluminum to 25% from his previous 10% rate and eliminating country exceptions and quota deals, as well as hundreds of thousands of product-specific tariff exclusions for both metals.

On her part, European Commission President Ursula Von Der Leyen expressed she deeply regretted the US decision, which she saw as bad for businesses and even worse for consumers.

"Unjustified tariffs on the EU will not go unanswered - they will trigger firm and proportionate countermeasures. The EU will act to safeguard its interests," she added.

Meanwhile, the EU's trade chief Maros Sefcovic said Trump's tariffs are a "lose-lose scenario". 

On his part, German Chancellor Olaf Sholz promised that the European Union would respond to the US introduction of duties on steel and aluminum exports from Europe.

"If the US leaves us no other choice, then there will be a united reaction of the EU," he said, adding that he hopes they "will avoid the mistaken path of tariffs and counter-tariffs. Trade wars always cost both sides prosperity in the end."

Canadian Prime Minister Justin Trudeau called the tariffs "unacceptable".

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Steel imports accounted for about 23% of American steel consumption in 2023, according to American Iron and Steel Institute data, with Canada, Brazil, and Mexico being the largest suppliers.

Canada, whose abundant hydropower resources aid its metal production, accounted for nearly 80% of US primary aluminum imports in 2024.

Speaking on the sidelines of the Paris Artificial Intelligence Summit, Trudeau said Canada would seek to highlight the negative impact of the US tariffs, and, if necessary, its response would be firm and clear.

"Canadians will stand up strongly and firmly if we need to," he said.

Canada is planning to file a complaint to the World Trade Organization against the tariffs Trump is imposing, and previously, Canadian Prime Minister Justin Trudeau called on Canadians to boycott US products and go for locally produced alternatives.

Tariffs, Trump's 'most beautiful word in the dictionary'

Trump reiterated that "tariff, is the most beautiful word in the dictionary" several times throughout his campaign in rallies, including on his Inauguration Day Parade on January 21, during which he said, “I always say tariffs are the most beautiful words to me in the dictionary."

The latest chapter of Trump's trade war is 25% tariffs on all steel and aluminum imports with no exceptions, no exemptions in a move that would impact major US trading partners, including Canada and Mexico, whom he already hit with 25% tariffs on most exports before later suspending them for a month pending breakthroughs.

Trump said his move simplifies tariffs on all metals, as it would be "25% without exceptions or exemptions. That's all countries, no matter where it comes from, all countries" with the decision going into effect on March 4 and applying to millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea, and other countries.

Back in December, Trump confirmed that he would impose tariffs on the European Union imports, under the pretext that the EU had treated the United States terribly. In a post on his Truth Social platform, Trump said, "They must make up their tremendous deficit with the United States by the large-scale purchase of our oil and gas. Otherwise, it is TARIFFS all the way!!!”

The EU prepared a retaliation that would target Silicon Valley if Trump followed through with his tariff threats, using the European Commission's "anti-coercion instrument", which allows it to target specific US service industries like Big Tech, according to a Financial Times report last week.

China, which was hit with a 10% tariff, has already taken retaliatory measures against the United States and imposed tariffs on select American goods: a 15% tariff on US coal and liquified natural gas and a 10% tariff on crude oil agricultural products and certain cars effective from February 10.

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