The European Union is set to impose “reciprocal” tariffs on United States steel and aluminium if President Donald Trump moves forward with his threat of 25% duties on European imports.
French President Emmanuel Macron made the announcement on Friday, February 28, during a state visit to Portugal, signalling a potential escalation in trade tensions between Washington and Brussels.
Macron emphasized the need for the EU to defend its economic interests, stating, “Europeans will respond and therefore there will be reciprocal tariffs. Because we must protect ourselves, defend ourselves.”
Speaking alongside Portuguese Prime Minister Luis Montenegro in Porto, Macron warned against showing weakness in the face of such measures. Montenegro echoed Macron’s stance, asserting that a similar response from Europe would be necessary.
“Of course Europe will have to react to the tariffs, at the same or similar level,” he said, adding, “it would make no sense not to do the same.”
The threat of retaliatory tariffs comes after Trump vowed on Wednesday to impose a 25% duty on EU imports, including cars, accusing the bloc of unfair trade practices.
The proposed tariffs would mirror those set to take effect on imports from Canada and Mexico next week, while China faces a 10% additional tariff.
Trump justified the move by accusing the EU of taking advantage of the United States, a claim that has further strained transatlantic relations.
The potential for an escalating trade war has raised concerns across Europe, with officials warning of significant economic fallout. Macron indicated that the EU would not hesitate to respond if the tariffs are confirmed in early April.
“If in early April, as has been announced, tariffs are imposed on European products at this level, Europeans will have to respond,” he said.
The European Commission, which manages trade policy for the EU’s 27 member states, has previously signalled its readiness to retaliate in the event of new US tariffs.
In a statement, the Commission said it would “act swiftly and appropriately” to defend European interests, hinting at measures targeting key American exports such as motorcycles, bourbon, and orange juice.
Trade experts warn that a tit-for-tat tariff battle could have serious repercussions for both economies, potentially disrupting supply chains and increasing costs for consumers and businesses.
The European Union is one of the largest trading partners of the United States, with bilateral trade in goods and services amounting to nearly $1.3 trillion annually.
The situation also poses a challenge for EU unity, as member states differ in their economic exposure to US trade measures. Germany, with its substantial automotive exports to the US, stands to be particularly affected by the proposed tariffs.
In contrast, southern European countries may prioritize agricultural exports in any retaliatory measures.
As the deadline approaches, diplomatic efforts to defuse the situation are likely to intensify. EU officials have called for dialogue with Washington to address trade imbalances without resorting to punitive measures.
However, with Macron’s firm stance and Trump’s continued threats, the prospect of a full-scale trade confrontation remains a significant risk.
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