February 12, 2025: Donald Trump has announced a 25% tariff on all steel and aluminum imports, reigniting trade tensions between the US and its key partners. The European Union has vowed retaliation, warning that these tariffs will not go unanswered.

The decision to take effect on March 4 marks a return to aggressive trade policies that defined Trump’s previous term. The EU, which negotiates trade agreements on behalf of its member states, has already begun preparing countermeasures. In 2018, a similar move led to €2.8 billion in retaliatory tariffs on US goods, affecting industries from agriculture to luxury products.

Markets reacted swiftly, with concerns over a broader trade war impacting global supply chains. Analysts fear additional tariffs could escalate beyond metals, dragging sectors like automobiles, technology, and consumer goods into the dispute. Given the EU’s past responses, US exports such as whiskey, motorcycles, and agricultural products could be targeted again.

The trade dispute is not limited to Europe. China, Canada, and Mexico are also reviewing potential countermeasures. China, in particular, has engaged in previous rounds of tit-for-tat tariffs with the US, affecting hundreds of billions of dollars in trade.

US manufacturers and businesses reliant on imported steel and aluminum are warning of higher production costs, which could lead to increased consumer prices. Meanwhile, domestic steel producers have welcomed the move, arguing that it protects American jobs and prevents unfair competition from subsidized foreign industries.

Diplomatic talks are expected in the coming weeks, but if both sides refuse to compromise, a prolonged trade conflict could disrupt key economic sectors. The EU is expected to finalize its list of retaliatory tariffs soon, setting the stage for a potential standoff between two of the world’s largest economies.

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