The European Union said it would respond with "firm and proportionate countermeasures" after U.S. President Donald Trump's decision to impose tariffs on all steel and aluminum imports, escalating fears of a trade war.
Trump signed proclamations late on Monday raising the U.S. tariff rate on aluminum to 25 percent from his previous 10 percent rate and eliminating country exceptions and quota deals as well as hundreds of thousands of product-specific tariff exclusions for both metals.
The measures would take effect on March 4, a White House official confirmed. The tariffs will apply to millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the U.S. duty-free under the carve-outs.
The move will simplify tariffs on the metals "so that everyone can understand exactly what it means," Trump told reporters. "It's 25 percent without exceptions or exemptions. That's all countries, no matter where it comes from, all countries."
Trump said he would follow with announcements over the next two days about reciprocal tariffs on all countries that impose duties on U.S. goods, and said he was also looking at tariffs on cars, semiconductors and pharmaceuticals.
Asked about threats of retaliation by other countries against his new tariffs, Trump said: "I don't mind."
EU to respond
European Commission President Ursula von der Leyen said she deeply regretted the U.S. decision, adding that tariffs were taxes that were bad for business and worse for consumers. EU steel exports to the U.S. have averaged about $3 billion a year over the past decade.
"Unjustified tariffs on the EU will not go unanswered - they will trigger firm and proportionate countermeasures. The EU will act to safeguard its interests," she said in a statement.
Von der Leyen did not provide details of the response. One option would be to reactivate the tariffs the EU imposed in 2018 that were suspended under a truce agreed between von der Leyen and then-U.S. president Joe Biden.