Trump Escalates Trade War, EU Warns: It May Accelerate Implementation of Countermeasures

On Monday (June 2) local time, the European Union (EU) warned that if US President Donald Trump followed through on his latest tariff threats, such as imposing a 50% tariff on steel and aluminum products, the EU might accelerate the implementation of retaliatory measures.

On Friday, Trump announced that he would raise tariffs on imported steel and aluminum from the current 25% to 50%, effective June 4.

The European Commission stated on Monday that it "strongly regretted" the US's tariff hike and claimed that this move was undermining efforts to resolve trade disputes between the two sides.

A new round of trade negotiations between the EU and the US will take place from June 3 to 4 during the Organization for Economic Cooperation and Development (OECD) Ministerial Council Meeting in Paris.

According to Olof Gill, a spokesperson for the European Commission, EU Trade Commissioner Šefčovič will meet with US Trade Representative Greer in Paris this Wednesday, while a delegation from the European Commission is also heading to Washington to continue technical-level negotiations.

"If the two sides cannot reach a mutually acceptable solution, the EU's existing and potential countermeasures will take effect on July 14, or earlier if the situation warrants," Gill said. "The European Commission has always made it clear that it will be ready to defend the interests of the EU and protect our workers, consumers, and industries."

The EU is trying to accelerate the negotiation process with the US before July 9. Trump had previously threatened to impose a 50% punitive tariff on the EU but later announced that the implementation would be postponed until July 9.

The EU had previously approved tariff hikes on US products worth 21 billion euros, which could take effect rapidly. These measures target politically sensitive US states, such as soybeans, agricultural products, poultry, and motorcycles from Louisiana. Louisiana is the home state of US House Speaker Mike Johnson.

In addition, the EU has prepared an alternative list of US products worth 95 billion euros for tariff hikes. These measures will target industrial products, including Boeing aircraft, US-made cars, and bourbon whiskey, in response to Trump's "reciprocal tariff" and car tariffs.

Gill stated, "If our negotiations fail to reach a balanced outcome, the EU will be prepared to implement countermeasures, including responding to this latest tariff hike."

Despite issuing warnings about further tariff hikes, the EU also stated that its top priority remains to leave room for negotiations and that reducing tariffs remains a long-term goal.

The European Commission's negotiation strategy focuses on key industries, such as semiconductors and pharmaceuticals, and also addresses tariff and non-tariff barriers. The EU also plans to combine its approach to eliminating regulatory hurdles with its plan to simplify regulations.