trade defence tool box

Tension has risen a notch after US President Donald Trump announced 25% tariffs on aluminium and steel. The European Commission reacted in the heat of the moment, announcing that retaliatory measures were being drawn up.

“Unjustified tariffs on the EU will not go unanswered – they will trigger firm and proportionate countermeasures,” European Commission President Ursula von der Leyen said, adding “the EU will act to safeguard its economic interests”.

Talking to the European Parliament, trade commissioner Maroš Šefčovič announced: “We are currently assessing the scope of the measures announced overnight and will be responding in a firm and proportionate way by counter measures.”

The European Union could respond with targeted tariffs on US aluminium and steel, as it did in 2018 when the Trump administration had already targeted European imports. It could also choose a sample of other products to tax

German Chancellor Olaf Scholz, whose country is particularly targeted by Trump’s threats to the German car industry, reacted by calling for European solidarity.

“We benefit from Europe like no other country. We are the largest exporting country. If the EU is targeted by US tariffs, as is already the case with steel and aluminium, then we are more dependent on European solidarity than any other country.”

At the European Parliament, some MEPs also called for unity in front of what looks like the beginning of a trade war.

“The EU must stand united,” Jörgen Warborn said, adding that “fragmentation will weaken our process.” However, the MEP from the European People’s Party warned that negotiations with the US must continue.

“We have a well developed trade defence tool box”, but it should be used “ only after negotiations have failed,” claiming that “a tit-for-tat trade war will not benefit us”.

Socialist MEP Iratxe García said that the retaliation measures should target “part of US economy” and that “Trump has chosen the wrong path.”