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‘Prepared to impose countermeasures’: EU warns Trump over 50% steel tariff

The EU confirmed that it is prepared to reinstate and expand its countermeasures if the situation does not improve.
June 01, 2025 / 08:59 IST
The tariff hike has drawn backlash not only from international allies but also from labour groups.

The European Union has strongly criticised US President Donald Trump’s decision to double tariffs on steel imports from 25 percent to 50 percent, warning that the move risks derailing efforts to resolve the ongoing trade standoff through negotiations.

In a statement to NBC News on May 31, an EU spokesperson said, “We strongly regret the announced increase of U.S. tariffs on steel imports from 25 percent to 50 percent ,” adding that the escalation “undermines” the possibility of a “negotiated solution.”

“This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic,” the EU spokesperson added.

The EU also confirmed that it is prepared to reinstate and expand its countermeasures if the situation does not improve. “If no mutually acceptable solution is reached, both existing and additional EU measures will automatically take effect on 14 July, or earlier, if circumstances require,” the spokesperson told NBC News. The bloc had earlier paused its retaliatory measures on April 14 to allow space for talks.

Trump’s announcement came during a rally at U.S. Steel in Pennsylvania on May 30, where he said the new tariffs would take effect on June 4. He also referenced a pending agreement between Nippon Steel and U.S. Steel, claiming there would be “no layoffs and no outsourcing whatsoever” due to the deal, though it has yet to be finalised.

The tariff hike has drawn backlash not only from international allies but also from labour groups. The United Steelworkers union (USW) called the move a “direct attack on Canadian industries and workers.” Marty Warren, USW’s National Director for Canada, warned in a statement, as cited by CNBC, that “thousands of Canadian jobs are on the line and communities that rely on steel and aluminium are being put at risk.”

“Canada needs to respond immediately and decisively to defend workers,” Warren added.

Meanwhile, Trump’s broader tariff strategy encountered legal hurdles this week. The U.S. Court of International Trade ruled that the president had overstepped his authority in imposing certain country-specific tariffs, leading to a temporary halt. However, that ruling has since been paused by an appeals court, allowing the administration to maintain its current course — at least for now.

Moneycontrol News
first published: Jun 1, 2025 08:52 am

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