Donald Trump sparks tariff trade war as EU threatens ‘firm and proportionate’ retaliation to US steel levies

Donald Trump has reignited a trade conflict by imposing new tariffs on steel and aluminium imports, sparking a strong backlash from the European Union. European Commission President Ursula von der Leyen condemned the US decision, vowing that the EU would respond with “firm and proportionate” measures.  Von der Leyen expressed her regret over the tariffs, calling them unjustified, and reiterated that the EU would not allow the move to go unanswered.  European Union trade commissioner Maros Sefcovic also criticized Trump’s decision, warning that it would fuel inflation and negatively impact US consumers. He called the tariffs a “lose-lose” situation but expressed the EU’s commitment to finding a mutually beneficial solution with the United States as soon as possible. Trump’s announcement of the new tariffs came on Monday, February 10, when he raised the duties on steel and aluminium imports to a flat 25% without exceptions or exemptions. The tariffs will apply to imports from countries that had previously enjoyed duty-free access to the US, including Canada, Brazil, Mexico, South Korea, and others. This move aims to support struggling US industries but risks escalating tensions and triggering a multi-front trade war. The tariffs will take effect on March 4, and the White House confirmed that Trump plans to introduce reciprocal tariffs in response to countries that impose duties on US goods. The US president also indicated that he was considering tariffs on other sectors, including cars, semiconductors, and pharmaceuticals. While Trump remained defiant in the face of retaliation threats, stating, “I dont mind,” the decision has already drawn criticism. US data shows that the countrys aluminum production has dropped significantly in recent years, and the country has become heavily reliant on imports. Steel imports accounted for about 23% of US steel consumption in 2023, with Canada, Brazil, and Mexico being the largest suppliers. Trump had previously threatened to impose tariffs on imports from Canada and Mexico over border security issues, but those tariffs were postponed after some border security concessions. Additionally, ongoing tariffs on Chinese imports have led to reciprocal measures from Beijing, escalating trade tensions further.The post Donald Trump sparks tariff trade war as EU threatens ‘firm and proportionate’ retaliation to US steel levies appeared first on Linda Ikeji Blog.