Trump’s New Trade Tariffs Spark Global Tensions

After President Donald Trump signed proclamations imposing a 25% tariff on all steel and aluminum imports into the United States, he marked a significant expansion of American trade barriers, following Trump’s earlier announcement of a 25% duty on all Canadian and Mexican products, though their enforcement has been delayed by 30 days. Additionally, Trump introduced a 10% tariff on all Chinese imports, leading to swift retaliatory measures from Beijing.

The new tariffs revoke exemptions previously granted to key U.S. trading partners, including Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the European Union, Ukraine, and the United Kingdom. These countries had successfully negotiated carve-outs from the tariffs introduced in 2018 during Trump’s first term, which originally imposed 25% tariffs on steel and 15% on aluminum. However, this time, Trump has insisted on uniform application without exception, stating that the changes are meant to simplify the system. The new tariffs are set to take effect on March 12, 2025, with additional reciprocal tariffs on other products expected in the coming week. The European Commission swiftly responded with a preemptive statement condemning the tariffs and von der Leyen issued a firm declaration, emphasizing that these measures are unjustified and detrimental to both businesses and consumers. She warned that the EU would implement countermeasures to safeguard its economic interests and protect its industries. The Commission is currently evaluating the scope of Trump’s measures and preparing a proportional response.

During the European Parliament’s plenary session in Strasbourg, the Commission and the Council addressed the implications of the U.S. tariffs under the theme “Preparedness for a New Trade Era: Multilateral Cooperation or Tariffs.” Commissioner Maroš Šefčovič underscored the EU’s commitment to rules-based international trade, stressing the importance of multilateral organizations like the World Trade Organization, G7, and G20. He emphasized that the EU would continue to expand its network of trade agreements, seek mutually beneficial partnerships, and use economic security tools to protect European interests. He also signaled that the EU would take necessary countermeasures to defend its industry and single market.

The Polish Presidency of the Council, represented by Minister for European Union Affairs Adam Szłapka, reinforced the EU’s commitment to multilateral trade cooperation while acknowledging the need for reforms in global trade institutions. He highlighted the importance of EU trade agreements and stressed the necessity of using available trade defense instruments to counter unfair competition and economic security threats.

Political leaders from various European parliamentary groups also voiced their positions. Jörgen Warborn of the European People’s Party (EPP) criticized the U.S. for employing tariffs to bolster its businesses, while the EU continues to adhere to international trade norms. He urged a united EU response, emphasizing that any retaliation must comply with WTO regulations. He also advocated for strengthening European production chains to reduce dependency on American imports. Iratxe García Pérez, President of the Socialists and Democrats (S&D) group, condemned Trump’s protectionist policies, calling them an intimidation tactic against key trading partners. She warned that the trade war threatens global economic prosperity and called for strengthening the EU’s internal market, reducing reliance on unstable markets, and diversifying trade agreements. Representing the European Conservatives and Reformists (ECR), Daniele Polato noted that U.S. protectionism is not new, recalling previous tariffs imposed under the Biden administration. He urged the EU to remain united in defending its businesses but warned against escalating the situation into a full-scale trade war. He stressed that the EU must proactively address its own economic challenges, including Germany’s economic slowdown and regulatory constraints affecting key sectors. Valérie Hayer, President of Renew Europe, echoed the call for unity, advocating for swift EU countermeasures to protect European workers and businesses. She urged the Commission to complete the single market and establish a capital markets union to strengthen Europe’s internal economy. Terry Reintke, Co-President of the Greens/EFA, expressed concerns about the erosion of the international rules-based order and emphasized the need for Europe to act decisively to maintain stability. She advocated for a “Europe united” approach and warned against yielding to U.S. pressure on key regulatory issues, such as AI and digital taxation. Leaders from The Left, Manon Aubry and Martin Schirdewan, took a more radical stance, condemning the EU’s deregulation policies and calling for strategic independence from U.S. trade pressures. They criticized Trump’s trade war as a symptom of global capitalist competition that harms workers and the environment. They advocated for a shift towards economic sovereignty in Europe, emphasizing the need for protectionist measures to support European industries and climate-friendly policies.