Europe threatens retaliation as Trump plans 25% tariffs on steel, aluminium
President Donald Trump is expected to introduce new 25% tariffs later on Monday on all steel and aluminium imports into the US, on top of existing metals duties, in another major escalation of his shake-up of trade policy.
Trump's pre-announcement coincided with the implementation of China's retaliatory tariffs, which were announced last week. With a 15% tax on coal and LNG and a 10% levy on crude oil, farm equipment, and some automobiles, the measures target $14 billion worth of goods.
As the risk mounts of a multi-front trade war, the European Union flagged it may retaliate and Trump promised further announcements on Tuesday or Wednesday of broader reciprocal tariffs to match those of countries importing US goods.
Shares in European and Asian steelmakers fell while their US counterparts rose.
The largest sources of US steel imports are Brazil, Canada and Mexico, followed by South Korea and Vietnam, according to government and American Iron and Steel Institute data.
In South Korea, the Industry Ministry called in steelmakers to discuss how to minimise the impact of tariffs.
Hyundai Steel shares dipped by as much as 2.9% amid a broader decline among South Korean steelmakers.
European steelmakers account for about 15% of imports into the United States, and shares in ArcelorMittal, and Voestalpine slipped between 1.3% and 2.5%.
The European Commission said it saw no justification for the imposition of tariffs: "We will react to protect the interests of European businesses, workers and consumers." It said Commission President Ursula von der Leyen would meet US Vice President JD Vance in Paris on Tuesday during an AI summit. The German government said it was “working towards ensuring that these measures do not materialise”.
US metal stocks — Nucor, US Steel, and Cleveland-Cliffs rose between 6% and 10% in premarket trading, while Century Aluminum added 8.5% and Alcoa 5%.
US Prez reiterates claim on Gaza, Canada
Trump said on Sunday he is committed to buying and owning Gaza, but could allow sections of the land to be rebuilt by other states in West Asia. He added Palestinians in Gaza would not have a right to return under his plan for US “ownership”. He added he was serious about wanting Canada to become the 51st state in an interview that aired on Sunday during the Super Bowl preshow.
