Europe is not taking President Donald Trump’s tariff plans lying down. The EU responded to the “unjustified” tariffs Wednesday by unveiling countermeasures on up to €26 billion or $28 billion worth of American goods exports, including tariffs on boats, bourbon and motorbikes. The measures, which will come into force in April, are “swift and proportionate,” EU said in a statement.
“It may go up higher,” Trump said Tuesday of the 25% tariffs on all countries’ steel and aluminum sent to the U.S. at an event hosted by the Business Roundtable. “The higher it goes, the more likely it is they’re going to build,” he said, referring to more companies moving their production to the U.S.
READ: Canada, China, Mexico, South Korea, India among 10 countries to be hit by Trump’s tariffs on aluminum, steel (February 11, 2025)
Trump has been aggressive in his plan to impose tariffs on his trade partners, as he seems to be intent on promoting domestic industry. However, his moves could hurt the economy as well as regular citizens who will have to pay a much higher premium for goods.
William Oplinger, CEO of Alcoa, one of the largest aluminum makers in the U.S., warned last month that Trump’s tariff plans could lead to the loss of approximately 100,000 jobs, which could include 20,000 jobs from the aluminium industry.
READ: The perils of Trump’s proposed tariff trade war (February 6, 2025)
A 25% tariff on aluminum from Europe would likely lead to higher prices for aluminum products, which could increase costs for industries relying on aluminum, such as automotive, construction, and packaging. This could also result in reduced competitiveness for European manufacturers, potentially leading to slower economic growth, higher production costs, and increased inflation for consumers. Additionally, the tariff could provoke retaliatory trade measures from other countries, escalating trade tensions and disrupting global supply chains.
However, Trump recently backtracked from his threat to double tariffs on Canadian aluminum and steel after Ontario Premier Doug Ford agreed to pause surcharges on electricity for the U.S.