The European Union has expressed “strong regret” over President Donald Trump’s surprise announcement to double US tariffs on steel and aluminium imports, a move that risks disrupting ongoing bilateral trade talks. The decision came during a rally on Friday in Pittsburgh, a steel-producing city, where Trump declared tariffs would rise from 25% to 50%, aiming to bolster the domestic steel industry and reduce reliance on foreign suppliers.
In a statement to the BBC on Saturday, the European Commission said Trump’s latest tariff hike “undermines ongoing efforts” to reach a trade deal and warned of potential retaliatory measures. The Commission noted that the EU had paused its countermeasures on April 14 to allow space for continued negotiations but emphasized that it is “prepared to impose countermeasures” if necessary.
Implications for UK-US Trade Deal
The tariff increase also casts uncertainty over the UK’s recently agreed zero-tariff deal with the US on steel and aluminium, which has yet to be formally signed. UK steelmakers described the doubling of tariffs as “yet another body blow” to the industry. A UK government spokesperson said officials are engaging with US counterparts to clarify the implications of the new tariff announcement.
Trump claimed that raising tariffs would revive the American steel industry and prevent job losses, promising bonuses for steelworkers and an infusion of $14 billion into the region’s steel production through a partnership between US Steel and Japan’s Nippon Steel. However, he later acknowledged that the deal had not yet been finalized or approved.
Despite Trump’s optimism, US steel manufacturing has declined in recent years, with countries like China, India, and Japan leading global production. Approximately 25% of steel used in the US is imported, making tariffs a significant factor in the market.
Ongoing Legal Battles and Trade Negotiations
The tariff hike comes amid a court battle over the legality of some Trump administration tariffs. While the Court of International Trade ordered a halt to certain tariffs, an appeals court allowed others, including those on steel and aluminium, to remain in place.
Negotiations with the EU have been tense. In April, Trump imposed a 20% tariff on most EU goods but later reduced it to 10% to allow more time for talks. He threatened to raise tariffs to 50% starting June 1 but extended the deadline to July 9 after a “very nice” call with Ursula von der Leyen, President of the European Commission.
What The Author Thinks
While protecting domestic industries is an understandable priority, doubling tariffs risks escalating trade tensions and harming consumers and businesses on both sides. Instead of fostering industrial growth, such aggressive tariff hikes often invite retaliatory measures and create uncertainty that can stifle investment and cooperation. Sustainable solutions should balance domestic interests with constructive international dialogue.
