The European Union has expressed strong disappointment over President Donald Trump’s unexpected announcement to increase tariffs on steel and aluminium imports from 25% to 50%. Made during a rally in Pittsburgh, this decision may significantly impact ongoing trade negotiations between the US and the EU.
The European Commission stated that this tariff escalation “undermines ongoing efforts” to secure a trade agreement and suggested that there may be potential countermeasures in response. Furthermore, the tariff hike casts doubt on the recently agreed zero tariff deal the UK negotiated with the US, which is still pending signature.
UK steel producers described the announcement as a “body blow” to their sector, while a government spokesperson highlighted that they are currently discussing the implications of the tariff changes with US representatives.
In their statement, the European Commission warned that the tariff increase adds uncertainty to the global market and raises costs for businesses and consumers in both regions. They noted that the EU had previously delayed countermeasures to facilitate negotiations but is now prepared to respond if necessary.
Trump projected that the tariff hike would bolster local steel production, promising a $14 billion investment from US Steel and Nippon Steel. However, this plan is still subject to final approval. As history shows, US steel manufacturing has been struggling, as imports make up a substantial share of usage in the country.
Source: www.bbc.com
