Transatlantic trade war nears as Trump and EU clash over metals tariffs and digital laws

In Paris, EU chief Ursula von der Leyen and US Vice-President J.D. Vance discuss the ‘challenge of non-market overcapacity’

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US President Donald Trump signs an executive order in Washington on Monday imposing 25 per cent tariffs on all steel and aluminium imports. Photo: EPA-EFE

Published: 1:12am, 12 Feb 2025Updated: 1:27am, 12 Feb 2025

Europe and the United States are on the brink of a trade war after Brussels vowed to retaliate against steel and aluminium tariffs pledged by US President Donald Trump and Vice-President J.D. Vance threatened action against the EU’s stringent digital rules.

On Monday, Trump signed an executive order expanding 25 per cent steel and aluminium tariffs to cover all US imports in a move overriding interim agreements that gave the EU and Britain exemptions from previous metals duties levied in 2018.

“I deeply regret the US decision to impose tariffs on European steel and aluminium exports,” European Commission President Ursula von der Leyen said. “Unjustified tariffs on the EU will not go unanswered. They will trigger firm and proportionate countermeasures.”

Trade commissioner Maros Sefcovic said the bloc “will always protect our interests from unjustified measures, in line with our values”.

“This time has come. We are currently assessing the scope of the measures announced overnight and will be responding in a firm and proportionate way by countermeasures,” the Slovakian official said.

“We will act to safeguard our economic interests, we will protect our workers, businesses and consumers.”