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Trump attacks, Europe responds!
By Gabriele Brambilla
U.S. sanctions on European steel and aluminum prompt Old Continent to respond
Trump attacks and puts European Union in crosshairs
The title says it all: Trump attacks and Europe responds, or rather, prepares to do so.
From today, duties of 25% on metallurgical products (steel and aluminum) of European origin are in force. Specifically, industrial grade products, semi-finished products and also commercial derivative products, such as machine parts for industry, will end up targeted.
Almost at the same time, the measures adopted against Australia and Mexico were confirmed.
The US government’s move is motivated by issues relating to the balance of trade. In 2023, the European Union recorded a surplus of over 155 billion euros compared to the United States in terms of goods; however, it must be said that the situation was different for services, with an American surplus of 104 billion euros. In any case, the EU remains in an advantageous position compared to the United States; hence the measures, at least according to the official line.
Trade between Europe and the United States is huge: we’re talking about almost 1.7 trillion euros in 2023. The tariffs will change the game considerably and will have a heavy impact on activities on both sides of the Atlantic.
According to Trump, the European Union has so far benefited from the USA. Quoting his words during a meeting at the end of February, “they don’t accept our cars and, in fact, our agricultural products either. They use all sorts of excuses, while we accept everything from them”.
We should point out that the European Union has stricter regulations than many American products in terms of pollution, composition, ingredients and so on; it is therefore natural that some US products cannot end up on our markets as they are. Furthermore, the president’s words should always be taken with due caution: we import a lot of American products anyway.
Europe responds
Ursula von der Leyen, President of the European Commission, has announced that the European Union will respond with tariffs on approximately 26 billion euros worth of American products. The duties in question will be introduced from April.
Von der Leyen said she regretted the measures adopted by the United States, which are always negative for businesses and consumers. However, the EU could not stand by and watch and had to fight back, despite the strong commercial (and other) ties that bind the USA and Europe.
The EU is not the only one preparing for a trade war with its historical allies: Canada has in fact already been in full swing for several weeks with an unprecedented nationwide mobilization. The Canadians are boycotting American products and responding decisively with tariffs.
Australia, also a victim of tariffs on steel and aluminum, has taken a different approach. Prime Minister Anthony Albanese labeled the American initiative as “unjustified”, but made it clear that there will be no equally unjustified retaliation.
We’ll see what happens. For sure, difficulties and a possible recession are on the horizon, unless things can change and return to a context of the most fluid exchanges possible, without tariffs that penalize trade and consumers. Because in the end, it’s the citizens and businesses who pay the consequences.
