Donald Trump’s order to impose a 25% tariff on steel and aluminum imported into the United States, which directly impacts the European Union, is now official and will come into effect on March 12. Amid uncertainty about possible European countermeasures and the scope of the trade war that could be unleashed, the president of the European Commission, Ursula von der Leyen, warned Washington that these “unjustified” taxes will provoke “firm and proportionate” retaliation. In a brief statement, von der Leyen said that “the EU will protect its economic interests,” “deeply” regretting the measure adopted by Trump.
This tax on both metals constitutes the first attack by the new US Administration against the interests of the community block, considering that European countries together represent 15% of all steel imported by the US, especially affecting Germany, the main economy of the EU
Ursula von der Leyen’s message has been pragmatic, maintaining the position adopted in recent days of waiting, observing and then acting. The president of the European Commission has tried to ease tensions with Washington during a meeting in Paris with the US vice president, J. D. Vance, within the framework of the summit on artificial intelligence organized by the French president, Emmanuel Macron. This conversation, in which the EU High Representative for Foreign Policy and Security Policy, Kaja Kallas, also participated, marked the first contact between von der Leyen, who maintained a close relationship with the Administration of the Democrat Joe Biden, and the Trump team. Despite Trump’s criticism of the EU, which he accused of treating the US “very badly”, and the new taxes imposed by his government, von der Leyen has stressed the importance and relevance of the transatlantic relationship. She also highlighted the impact of Chinese overproduction, especially in metals. In addition, in that conversation, the European leader hinted at the possibility of resuming energy agreements. Brussels believes that it is possible to negotiate with Trump to avoid a trade war. One of the points discussed was the growing purchase of liquefied natural gas (LNG) from the United States by the EU. During the meeting, von der Leyen stressed to Vance (and by extension, to Trump) that the trade balance between the US and the EU is not as negative as Washington often says. Although the US imports much more from the EU than the other way around, the European bloc buys and consumes significantly more services from the United States than the other way around. In fact, the trade balance figures handled by both parties show notable differences. For his part, Vance hinted that there is room to deepen economic relations, while specifying that Washington seeks to ensure that the strategic relationship in terms of security is mutually beneficial. for 24 seconds
Von der Leyen’s message is practical and is in line with the “wait, see, then act” stance adopted in recent days. During a meeting in Paris on the sidelines of the summit on artificial intelligence organised by Emmanuel Macron, the head of the Community Executive tried to ease tensions with Washington in a conversation with the US vice president, J. D. Vance, in which the High Representative for Foreign Policy and Security, Kaja Kallas, also participated. This meeting marked the first contact between the European administration, which had shown great harmony with Joe Biden’s management, and the Trump team.
Despite Trump’s aggressive statements, who said that the EU treats the United States “very badly” and announced new taxes, Von der Leyen stressed the need and opportunity to strengthen the transatlantic relationship, especially considering the impact of Chinese overproduction, among other factors.
In addition, the conversation opened the door to the possibility of new energy agreements. Sources close to the talks say Brussels is confident it can negotiate with Trump to avoid a trade war. One of the points under discussion is encouraging the EU to buy more liquefied natural gas (LNG) from the United States. At the meeting, the German representative addressed her comments to Vance – and by extension to Trump – pointing out that the trade balance between the US and the EU is not as unfavorable as Washington claims, given that, although the United States imports many more goods from the EU, the European bloc consumes considerably more American services. In fact, the trade balance figures handled by both sides are notably different. Meanwhile, Vance indicated that there is room to deepen economic relations, although he also stressed that Washington seeks to ensure that the strategic relationship in terms of security benefits both nations.
“Illegal” tariffs, according to Brussels
But Brussels is still assessing the impact of the tariffs imposed by one of its main allies and is exploring, together with Washington, formulas to avoid a trade escalation. The EU executive maintains that such tariffs are illegal under World Trade Organization rules, and has called a meeting of trade ministers for this Wednesday.
The EU could respond quickly, for example, by reintroducing tariffs on certain American products such as bourbon or Harley-Davidson motorcycles, a measure that was already implemented in 2018 in response to the steel and aluminum levies imposed by Trump in his first term. Those tariffs were suspended after Joe Biden’s arrival, when it was agreed not to tax European steel and aluminum quotas. The cancellation of that agreement would allow Brussels to impose tariffs of up to 50% on imports valued at approximately 4.8 billion euros, an agreement that expires at the end of March.
European Council President António Costa was quick to back Von der Leyen, stating on social media that “the EU remains united to defend the interests of its companies, workers and citizens.” Other leaders, such as the Spanish Pedro Sánchez, have expressed similar positions.
But Brussels is still assessing the impact of the tariffs imposed by one of its major allies and is exploring, together with Washington, ways to avoid a commercial escalation. The European Commission maintains that these tariffs are illegal according to World Trade Organization rules and has agreed to a meeting of trade ministers for this Wednesday. The EU could respond quickly, for example, by reintroducing tariffs on certain U.S. products such as bourbon or Harley-Davidson motorcycles, as it did in 2018 in response to Trump’s steel and aluminum tariffs. Those tariffs were suspended after Joe Biden’s arrival, with an agreement not to impose additional tariffs on European steel and aluminum quotas. The cancellation of this agreement would allow Brussels to impose tariffs of up to 50% on imports valued at around 4,800 million euros, a deal that expires at the end of March. European Council President António Costa quickly went to support Von der Leyen, stating on social media that “the EU remains united in defending the interests of its companies, workers, and citizens.” Other leaders, such as Spaniard Pedro Sánchez, have expressed similar positions. Brussels is signaling that it will respond “proportionately,” which suggests that retaliations will likely remain commercial rather than a broader display of force. The EU could resort to other measures, such as the anti-coercion regulation, which includes restricting access to the European market for certain goods or services. It could even prevent companies from a foreign country from participating in public tenders or engaging in projects funded by the EU budget. This regulation, which went into effect in 2023, was initially designed for countries like China or Russia but could now be applied to the U.S. Some voices are calling for the anti-coercion mechanism to target the powerful U.S. tech sector, which has also strongly supported Trump. The European Commission believes there is still room for negotiation to avoid a full-scale trade war or at least limit it to a skirmish. “We are still committed to constructive dialogue,” said European Trade Commissioner Maros Sefcovic on Tuesday at the European Parliament. «We are prepared for negotiations and to find mutually beneficial solutions wherever possible. “There is a lot at stake for both sides,” emphasized the European official, who again stressed that the tariffs have no justification and are actually “economically counterproductive.” for 18 seconds
Brussels has announced that it will respond in a “proportionate” manner, suggesting that, at least initially, it will limit itself to implementing trade retaliation rather than deploying all its measures. The EU could choose to resort to the anti-coercion regulation, which includes provisions to close the European market to certain goods and services or even prevent foreign companies from participating in public tenders or projects financed with EU funds. This instrument, an economic security tool that came into force in 2023 and was originally intended for countries such as China or Russia, could now also apply to the United States. Some voices advocate using this mechanism against the powerful American technology sector, which has largely supported Trump.
For its part, the European Commission believes that there is still room for negotiation and to avoid an escalation into a trade war, or at least that the dispute remains a skirmish. “We remain committed to constructive dialogue,” Trade Commissioner Maros Sefcovic declared in the European Parliament on Tuesday. “We are prepared to negotiate and find solutions that benefit both parties as much as possible. There is a lot at stake,” he stressed, insisting that the imposition of tariffs is unjustified and “economically counterproductive.”