Trump's Steel Tariffs: Europe Threatens Retaliation Over Increased Levies

The European Commission announced it is prepared to retaliate against U.S. President Donald Trump's plan to double tariffs on imported steel and aluminum. This raises the prospect of an escalating trade fight between the U.S. and Europe. Trump's announcement increases tariffs on imported steel and aluminum to 50 percent from 25 percent. The European Commission "strongly" regrets Trump's plan to increase tariffs, stating it "undermines ongoing efforts to reach a negotiated solution." A spokesperson said the EU is finalizing consultations on expanded countermeasures. If no solution is reached, EU measures will take effect on July 14, or earlier if needed. Trump announced the higher tariffs near Pittsburgh. He stated the tariff increase will help keep jobs for steel workers in the United States. He later posted on social media that the increased tariff would also apply to aluminum products, effective Wednesday. Canada's Chamber of Commerce denounced the tariff hike as "antithetical to North American economic security." Australia's Trade Minister Don Farrell called it "unjustified and not the act of a friend." The United States is the world's largest steel importer, excluding the EU, with 26.2 million tons in 2024. The new tariffs will likely increase steel prices.