Brussels, Feb 12, (dpa/GNA) – EU Commission President, Ursula von der Leyen, has announced a firm response to the special tariffs on steel and aluminium imports, ordered by US President Donald Trump.
“I deeply regret the US decision to impose tariffs on European steel and aluminium exports,” the EU leader said on Tuesday, one day after Trump announced the tariffs of up to 25%.
“Unjustified tariffs on the EU will not go unanswered. They will trigger firm and proportionate countermeasures,” she added.
The European Union will act to protect its economic interests, von der Leyen said. She said the EU would defend workers, companies and consumers. She called tariffs a tax, bad for companies, and even worse for consumers.
Bernd Lange, the chairman of the Trade Committee in the European Parliament, said the bloc would begin negotiations immediately. If member states have not agreed on a response by March 12, countertariffs will apply from April 1, he said in Strasbourg.
Lange was referring to the currently suspended special tariffs on US products such as jeans, bourbon whiskey, motorbikes and peanut butter.
The EU imposed such tariffs during Trump’s first term in office, when US special tariffs on steel and aluminium exports from the EU were introduced for the first time.
These are currently suspended under an agreement with the former US administration of Joe Biden.
In Berlin, German Chancellor Olaf Scholz on Tuesday also warned the United States that the EU is ready to respond to a trade war.
“If the US leaves us no other option, the European Union will react united,” Scholz said during a speech in parliament.
Scholz added that the EU, with a population of some 450 million, is the largest market in the world and has the power to respond.
“But I hope that we will be spared the wrong approach of tariffs and countertariffs. Trade wars always end up costing both sides prosperity,” he argued.
EU Trade Commissioner Maroš Šefcovic, told the European Parliament in Strasbourg that the extent of the measures ordered by Trump, is currently being examined.
He emphasized that the EU is open to negotiations, in order to find mutually beneficial solutions wherever possible.
According to an earlier assessment by von der Leyen, the European Union and Trump could, for example, conclude a new deal to expand American exports of liquefied natural gas (LNG).
It would also be possible to import more military technology and agricultural goods from the United States, and to lower import tariffs for US cars. At 10%, these were recently significantly higher than the US tariff of 2.5%.
According to the German Steel Federation, the US is the largest export market for the European steel industry. Germany is the EU’s leading steel producer, and ranks seventh globally, behind China, India, Japan, the US, Russia and South Korea.
Lisandra Flach, head of the ifo Center for International Economics, stated that the tariffs would likely have a stronger deterrent effect on Germany and the EU.
“Overall, the USA is likely to suffer more than the EU,” she said. Flach also pointed out that industries reliant on steel in production, could benefit from falling steel prices in Europe, if US exports decrease.
GNA