Ursula von der Leyen (CDU, r), President of the European Commission, stands in the plenary chamber of the European Parliament.
Philipp von Ditfurth | Picture Alliance | Getty Images
The European Union plans to retaliate against the United States for new steel and aluminum tariffs, adding another element to rising global trade tensions.
“Unjustified tariffs on the EU will not go unanswered — they will trigger firm and proportionate countermeasures,” European Commission President Ursula von der Leyen said in a statement late Monday.
The statement comes after U.S. President Donald Trump signed an executive order to impose 25% tariffs on steel and aluminum. Shares of American steelmakers rallied sharply on Monday following the order.
Tariffs are effectively a tax paid to import a good into a country. The latest tariffs could raise the price of foreign steel, and thereby help to support U.S. steel producers at the expense of international competitors. Von der Leyen called tariffs “bad for business, worse for consumers.”
Trump has taken an aggressive approach with tariffs early in his second tenure in the White House. He has already ordered tariffs on China, Canada and Mexico. The Canada and Mexico tariffs have since been delayed one month.
Europe is not alone in pushing back against the U.S. tariffs. Last week, China announced new levies against select U.S. imports.
Reuters has reported that von der Leyen is scheduled to meet U.S. Vice President JD Vance on Tuesday.
The rising trade tensions come at a time when inflation, both in the U.S. and globally, has yet to completely return to pre-pandemic levels. Some economists warn that tariffs could be passed on to consumers in the form of higher prices, which would push up inflation.
