EU warns of retaliation against Trump's 50% steel tariff...Is a transatlantic trade war about to begin?

If effective on June 4, countermeasures set for July 14

Canada calls it 'an attack on workers'

Australia protests, saying 'Not what allies do'

The European Union (EU) has announced possible retaliation against U.S. President Donald Trump, who has raised tariffs on foreign steel and aluminum products. President Trump had previously decided to increase tariffs on these products from 25% to 50%.

According to Reuters, a spokesperson for the European Commission said in an email statement on the 31st (local time), "We deeply regret the United States' decision to raise import tariffs on steel from 25% to 50%." The spokesperson noted that the EU had postponed countermeasures in the hopes of negotiating with the United States, adding, "The EU is prepared to take additional countermeasures in response to the U.S. tariff increase."

They continued, "If a mutually acceptable solution is not reached, both current and additional EU measures will automatically take effect on July 14, and potentially even earlier, depending on the situation."

Previously, President Trump had imposed a 25% tariff on foreign steel and aluminum products under Section 232 of the Trade Expansion Act from March 12. However, in a speech at the U.S. Steel plant near Pittsburgh, Pennsylvania, the day before, President Trump publicly announced plans to raise tariffs on steel. After the speech, he wrote on his social media platform, Truth Social, "It is a great honor to raise tariffs on steel and aluminum from 25% to 50%. This will be implemented starting Wednesday, June 4."

Trump's sudden tariff hike has dealt a blow to the steel industry. Kerstin Maria Rieffel, President of the German Steel Industry Association, told dpa, "The doubling of steel import tariffs announced by President Trump marks a new escalation in the transatlantic trade conflict," adding, "A 50% tariff will be an enormous burden on our industry."

According to the EU, the European steel industry contributes about EUR 80 billion (about ₩120 trillion) to the EU's total GDP, with around 500 production facilities operating in 22 out of 27 member states. It is a core manufacturing sector in Europe, providing over 2.5 million jobs. 20% of total steel and aluminum production is exported to the United States, making Europe the third-largest steel exporter to the U.S. after Canada and Mexico.

In March, the EU decided to strengthen 'safeguard' measures to restrict steel imports in order to protect its domestic steel industry after the U.S. imposed a 25% tariff on steel products. Separately, last month, the EU considered imposing retaliatory tariffs worth EUR 21 billion (about ₩33 trillion) in response to the U.S. steel tariff, but postponed this for 90 days until July 14 for further negotiations with the U.S.

On the 9th, in preparation for failed negotiations, the EU warned that it may impose additional tariffs on U.S. goods—including aircraft and automobiles—worth up to EUR 95 billion (about ₩150 trillion), in response to the U.S.' general 10% tariff and auto tariffs. The EU also began collecting public feedback on the detailed product list.

The EU is not the only one to strongly object to Trump's announcement. Canada and Australia also expressed strong opposition. The Canadian Chamber of Commerce said in a statement that the tariff hike is a move that negatively impacts North American economic security and called it a "direct attack on Canadian industry and workers." Don Farrell, Australia's Minister for Trade, criticized the increase, saying, "It is neither justified nor the action of an ally."

Reporter Park Subin, Hankyung.com waterbean@hankyung.com