EU threatens strong response to Trump tariffs on metals

European leaders will enact in-kind tariffs to counter U.S. President Donald Trump’s new steel and aluminum duties, European Commission President Ursula von der Leyen said Tuesday. Her announcement coincided with a speech in the European Parliament Tuesday by EU trade chief Maros Sefcovic. He said the American tariffs were economically counterproductive. European officials did not give any details about their plans to respond. The chair of the parliament’s trade committee, Bernd Lange, said it was critical to avoid an all-out trade war.

What sparked the comments? Trump on Monday installed 25% tariffs on imported steel and aluminum and ended exemptions that had allowed some countries to avoid the levies. The president hoped to use the tariffs to strengthen domestic metal industries, according to the White House. Canadian Prime Minister Justin Trudeau on Tuesday called the tariffs unacceptable, saying that his country may respond. Canada is a leading exporter of both steel and aluminum to the U.S., according to the U.S. International Trade Administration. 

Dig deeper: Read my report about China’s retaliatory tariffs on American goods.