The European Commission has responded cautiously to the latest tariff threats from U.S. President Donald Trump, who announced plans to impose a 25% tariff on steel and aluminum imports from the European Union, effective March 12. Although high-level discussions continue between the U.S. and the EU, the Commission has made it clear that it stands ready to respond “firmly and immediately” if these tariffs come into effect.
“We are still in the early stages of understanding the situation,” said European Commission spokesperson Olof Gill. Despite Trump’s controversial statement claiming the EU was created to “screw the United States,” Gill emphasized the EU’s ongoing commitment to dialogue and fairness in trade relations.
The tariff announcement has raised concerns within the EU, as the Commission has reiterated its stance that unfair trade barriers harm both sides. While discussions are ongoing, no formal countermeasures have been announced yet. The Commission has, however, prepared a list of products targeted in the previous trade dispute from 2018, which could be used for retaliation if necessary.
Trump’s new tariffs are part of his broader push for reciprocal tariffs on EU imports. He has also claimed that the U.S. suffers a significant trade deficit with the EU, citing $300 billion in goods trade. However, the European Commission counters that this deficit is largely offset by the EU’s surplus in services trade, reducing the overall trade imbalance to $50 billion.
In response to Trump’s threats, EU leaders, including Polish Prime Minister Donald Tusk, have reiterated the EU’s mission to foster peace, fairness, and strong trade relationships, emphasizing that tariffs are a “lose-lose” situation for both sides.
Trade Commissioner Maroš Šefčovič recently met with U.S. officials in Washington to discuss these issues, describing the talks as productive, yet leaving the matter unresolved for now. With tariffs set to take effect in just two weeks, both sides remain in a delicate balancing act, with the EU carefully monitoring the situation while keeping the door open for negotiations.
The outcome of this escalating trade tension could have significant implications for U.S.-EU relations and the broader global economy.