Trump tariffs target US$29.3 billion in EU steel and aluminium

The European Union estimates that the first wave of Donald Trump’s steel and aluminium tariffs will hit as much as €28 billion (US$29.3 billion) of the bloc’s exports in what would be a massive escalation in the US president’s trade war.

The amount of goods – which the EU assesses will include derivative products as well – would be about four times larger than the last time Trump targeted the bloc’s metals sector, according to people familiar with the EU’s thinking.

EU trade chief Maros Sefcovic debriefed the bloc’s ambassadors on Friday after his visit to Washington to meet with his US counterparts. He cautioned that the situation is in flux and the details and the scope of any tariffs could still change, said the people, who spoke on the condition of anonymity.

As part of his effort to rewrite global trade rules, Trump announced a series of duties including 25 per cent tariffs on steel and aluminium exports that could take effect as soon as March 12. He has also announced reciprocal tariffs based on policies of partners that are seen as obstacles to US trade.

The European Commission, which has authority over EU trade actions, declined to comment.

For the EU, the fight over American metals tariffs started in 2018 during Trump’s first term, when the US hit nearly US$7 billion of European steel and aluminium exports with duties, citing national security concerns. At the time, officials in Brussels scoffed at the notion that the EU posed such a threat.

In that first salvo, the US hit steel goods with 25 per cent tariffs and aluminium with 10 per cent, and included exemptions for certain products. Bloomberg reported earlier that this time around, no exemptions were planned.