The European Commission has said on Monday (Feb 10), it will protect EU interests after US President Donald Trump announced plans to impose new tariffs on steel and aluminium imports. However, the EU will wait for official details before deciding on a response.  

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Trump stated on Sunday ( Feb  9) that his government would introduce a 25 per cent tariff on all steel and aluminium imports. The EU, however, has not received any formal notification and will not react to broad announcements without written clarification.  

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 EU rejects tariffs as unfair  

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The European Commission has dismissed the need for tariffs on EU exports. The Commission said, "The EU sees no justification for the imposition of tariffs on its exports. We will react to protect the interests of European businesses, workers and consumers from unjustified measures."

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It said, "In general: The imposition of tariffs would be unlawful and economically counterproductive, especially given the deeply integrated production chains the EU and US established through Transatlantic trade and investment." 

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"Tariffs are essentially taxes. By imposing tariffs, the US would be taxing its own citizens, raising costs for business, and fuelling inflation. Moreover, tariffs heighten economic uncertainty and disrupt the efficiency and integration of global markets."

How can Europe retaliate against Trump's tariffs?

A Goldman Sachs report suggests that Trump's new tariffs may prompt the EU to retaliate by focusing on US tech services rather than goods. Given Europe's significant trade deficit in services, Brussels could impose digital restrictions to offset Washington's trade policies.

Trade tensions resurface  

If confirmed, this move would repeat Trump’s 2018 tariffs, which affected €6.4 billion ($6.6 billion) of EU exports. In response, the EU had imposed tariffs on €2.8 billion worth of US goods, including bourbon and Harley-Davidson motorcycles, with plans for more.  

(With inputs from agencies)