The European Union has announced it is launching €26bn (nearly £22bn) of trade “countermeasures” in retaliation to Donald Trump’s tariffs on steel and aluminium imports, escalating a global trade war.
The European Commission chief, Ursula von der Leyen, called the 25% levies on the metals coming into the US, which came into force at 4am GMT on Wednesday, “unjustified trade restrictions”.
“We deeply regret this measure,” she said in a statement, as Brussels announced it would be “launching a series of countermeasures” coming in on 1 April.
“The European Union must act to protect consumers and business,” Von der Leyen added.
The commission said steel and aluminum products would be hit with tariffs in return, but also textiles, leather goods, home appliances, house tools plastics and wood. Agricultural products will also be impacted — including poultry, beef, some seafood, nuts, eggs, sugar and vegetables.
“We will always remain open to negotiation. We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs,” von der Leyen said.
The UK prime minister, Keir Starmer, said on Tuesday that Britain would not his back with its own counter-tariffs, after last-ditch efforts to persuade Trump to spare British industry from his global tariffs appeared to have failed.
A No 10 spokesperson said: “We’ve been very clear that when it comes to the UK steel industry we remain prepared to defend the UK’s national interest where it’s right to do so. But we will continue to take a cool-headed approach.”
Trump’s tariffs “couldn’t come at a worse time”, the steel industry has warned as the levy on US imports is introduced.
Gareth Stace, the director general of the trade association UK Steel, branded the Trump administration’s move “hugely disappointing”.
He added: “These tariffs couldn’t come at a worse time for the UK steel industry, as we battle with high energy costs and subdued demand at home, against an oversupplied and increasingly protectionist global landscape. What’s more, the EU is also pushing ahead with trade restrictive action that will amplify the impact of US tariffs.”
The aluminium industry body had earlier warned the looming import taxes were already having an effect.
Nadine Bloxsome, the chief executive of the Aluminium Federation, said: “The sharp rise in US premiums has created new incentives for scrap exports, raising the risk of significant domestic scrap leakage. This not only weakens the UK’s recycling capacity but risks undermining our sustainability objectives and circular economy targets.
“Additionally, the uncertainty around potential trade diversion is placing considerable pressure on UK producers, especially as semi-finished goods may flood the UK market at lower costs.
“This could severely destabilise the competitiveness of UK aluminium manufacturers, who are already contending with high energy costs and complex regulatory challenges.”
