The European Union has said it "strongly regrets" a fresh move by US president Donald Trump to double import tariffs on steel and aluminium to 50 percent, warning the decision risks derailing efforts to resolve an escalating trade dispute with the United States. The new tariffs took effect on Wednesday.
Trump signed the order on Tuesday evening, raising the import taxes from the 25 percent rate first introduced in March. The metals sector was the first to face these targeted tariffs, part of Trump’s stated aim to boost domestic investment.
The European Commission said the bloc was ready to respond if needed. A €21 billion package of counter-tariffs, approved earlier this year, remains on standby.
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Trade talks in Paris
The move has added pressure to a ministerial meeting underway in Paris, hosted by the Organisation for Economic Cooperation and Development (OECD). EU trade commissioner Maros Sefcovic is due to meet US trade representative Jamieson Greer on Thursday.
EU officials hope the bloc can still secure an exemption from the higher tariffs. Brussels is not expected to retaliate immediately, to avoid disrupting other ongoing trade discussions with Washington.
“We have to keep our cool and always show that the introduction of these tariffs is in no one's interest,” said French Trade Minister Laurent Saint-Martin, speaking on the sidelines of the OECD meeting.
Meanwhile German Economy Minister Katherina Reiche stressed the urgency of reaching a deal. “We need to come up with negotiated solutions as quickly as possible, because time is running out," she said.
Jobs at risk in Europe
Europe’s steel industry has already been hit by falling demand and cheap imports, especially from China. The sector lost 18,000 jobs in 2024, with producers such as Germany’s ThyssenKrupp Steel cutting staff.
A 50 percent tariff could make European metal exports to the US unviable, putting more jobs at risk.
Industry sources told RFI they would not comment publicly until measures were officially confirmed, citing the unpredictable nature of recent US trade decisions.
In late May, Trump threatened to impose an additional 20 percent tariff on all European imports, before delaying the move after a phone call with European Commission president Ursula von der Leyen.
Canada hit hardest
Canada, the top supplier of steel and aluminium to the US, responded sharply. The office of prime minister Mark Carney called the tariffs “illegal and unjustified”.
“A tariff wall came down at midnight between Canada and the US, and the industry is taking it full force,” steelworkers union representative Nicolas Lapierre told RFI's Montreal correspondent.
“There are no businesses with profit margins of 25 to 50 percent. That doesn’t exist. We are very impacted.”
Canada exported more than 25 billion dollars in steel and aluminium last year, most of it to the United States.
After talks in Washington on Tuesday, Canada’s minister for US relations, Dominic LeBlanc, said: “We expressed our concerns about the increase, the tariffs are unacceptable. We explained how this will be harmful for Canada and the United States.”
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Ripple effects worldwide
Mexico is also seeking an exemption. “It makes no sense,” said Economy Minister Marcelo Ebrard, arguing that the US exports more steel to Mexico than it imports.
The UK will keep its current 25 percent rate for now while trade pact talks with Washington continue. A government readout said both sides aim to implement agreed terms “as soon as possible”.
The OECD has lowered its global growth forecast, citing the impact of US trade measures.
Chief economist Alvaro Pereira told the French news agency AFP that trade, investment and consumption have already slowed, with the US economy likely to be hit hardest.
(with newswires)
