U.S. President Donald Trump has announced plans to impose a 25% tariff on steel and aluminum products imported into the United States starting from 12th of next month, prompting the European Union (EU) to prepare countermeasures. Should the EU retaliate, it is expected that import barriers will expand. The EU has stated it will "respond swiftly" to the U.S. tariffs.
Earlier, the "Trump administration 1.0" imposed a 25% tariff on steel products and a 10% tariff on aluminum products in 2018, citing national security. The EU has previously imposed tariffs on agricultural and clothing products as part of its retaliatory measures against steel and aluminum.
According to foreign news on the 24th (local time), Ursula von der Leyen, President of the European Commission, will chair the first meeting of "strategic dialogue on steel" on the 4th of next month to discuss the future of the European steel industry. This strategic dialogue will involve stakeholders, including regional steel manufacturers and raw material suppliers, to discuss measures to ensure fair trade relations. The Commission plans to prepare a "steel and metals action plan" based on the matters discussed in the strategic dialogue.
The draft plan for the strategic dialogue that the EU has released includes a commitment to "protect the steel sector against unfair trade practices, unjust tariffs, and discriminatory policies that unduly weaken the competitiveness of the steel sector." Additionally, it emphasizes that "it is essential to more effectively utilize anti-dumping and countervailing tariffs to prevent the EU from becoming an export destination for excess steel production." The prospect of excess steel being **transferred** to the EU increases if the U.S. imposes tariffs.
The EU plans to find a solution to replace the emergency import restrictions (safeguards) that are set to expire in June 2026. Since 2018, the EU has been applying a quota system to 26 types of steel products and has extended the safeguard that imposes a 25% tariff on excess quantities twice. Safeguards can only be extended twice.
According to the EU, the European steel industry accounts for €80 billion (approximately 120 trillion won) of the total EU gross domestic product (GDP). Over 500 production facilities are operational across 22 of the 27 member countries. 20% of total steel and aluminum production is exported to the United States, making it the third largest after Canada and Mexico.
The EU expects that if U.S. tariffs are implemented, exports worth €28 billion (approximately 42 trillion won) will be adversely affected.