Trump’s 25% Import Tariff on Steel and Aluminum Takes Effect, EU Responds Strongly

On March 12, 2025, President Trump’s 25% tariff on imported steel and aluminum officially took effect at midnight on Wednesday. The European Union swiftly responded to this move, raising concerns in the market that this trade war could lead to widespread economic impacts if the tariffs are not just a negotiating tactic.

The White House confirmed this tariff policy on Tuesday evening, stating that it would apply to countries including Canada, Australia, and the EU. The tariffs will also be extended to hundreds of downstream products made of metal, such as nuts and bolts, bulldozer blades, and soda cans.

However, the White House also announced Trump’s decision to withdraw the plan to increase tariffs on Canadian steel and aluminum to 50%.

Following the implementation of the US tariffs, the EU immediately announced retaliatory measures, stating that it will impose tariffs on $28.33 billion worth of American goods starting from April.

The European Commission stated in a release that these measures aim to “protect European businesses, workers, and consumers from the impact of these unjustified trade restrictions.”

The targeted retaliatory tariffs by the EU include industrial and agricultural products such as steel, aluminum, textiles, household appliances, plastic products, poultry, beef, eggs, dairy products, sugar, and vegetables.

EU Commission President Ursula von der Leyen stated that these countermeasures will be implemented in two phases, the first starting on April 1 and fully taking effect on April 13.

The EU mentioned re-imposing $8 billion worth of tariffs on American goods that were previously suspended, followed by levying new tariffs on $18 billion worth of additional American products.

Von der Leyen described these measures as a “strong but proportionate” response and added, “We remain open to negotiations at all times.”

The actions taken by the US and the EU indicate an escalation in this trade war. Market concerns are rising about the possibility of these tariff policies further dragging down the global economy.

Trump’s tariffs have also faced criticism in Australia.

Australian Prime Minister Anthony Albanese openly criticized Trump’s metal tariff measures as “completely unjustified.”

During a press conference, Albanese stated, “This goes against the spirit of our longstanding friendship and the benefits brought by our economic partnership of over 70 years.”

However, Albanese emphasized that Australia will not impose retaliatory tariffs on American imported products as it would only raise prices for Australian consumers.

White House senior advisor Peter Navarro revealed to CNBC on Tuesday that the Trump administration will not increase tariffs on Canadian steel and aluminum to 50%.

Previously, Trump had mentioned his plan to double tariffs on metals from Canada, citing Ontario’s decision to impose a 25% additional tax on electricity exports to the US.

However, Ontario Premier Doug Ford later announced the suspension of this additional tax, which led Trump to abandon the original plan of imposing a 50% tariff.