Why it matters:
Washington's sudden decision could escalate trade tensions across the Atlantic. The European Union has previously responded to U.S. trade policies, often considering retaliatory measures.
The big picture:
The U.S. government's decision to impose a 25% tariff on aluminum and steel imports from the European Union, effective March 12, has prompted a strong reaction from E.U. officials. In response, the E.U. plans to implement countermeasures to safeguard its economy and protect jobs.
What they saying:
Ursula von der Leyen, President of the European Commission, stated that the EU will defend its interests against these unfair.
German Chancellor Olaf Scholz also declared that the EU would respond collectively if this situation continues, though he hopes this path will be corrected.
Go deeper:
The tariff hikes could harm both parties and have significant negative effects on trade and economic relations between the U.S. and the EU. If these tariffs persist, there will likely be further retaliatory measures and escalating international tensions.
This move comes amidst warnings from economic experts who fear that these tariffs could raise raw material prices for U.S. industries, driving up production costs. The EU is expected to announce its counteractions in the coming days, potentially intensifying the trade conflict between the two sides.
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