Transatlantic Tensions Rise: EU to Counter US Tariff Surge

The European Union plans firm measures in response to President Trump's decision to increase tariffs on steel and aluminium imports, affecting global trade dynamics. The EU warns of a potential trade war, while Canada vows a strong response to protect its interests. This has impacted metal markets globally.

The European Union has warned of robust countermeasures after President Donald Trump announced a hike in tariffs on steel and aluminium imports. The decision follows Trump's signing of proclamations raising tariffs on these imports to 25%, removing previous exceptions. This move stirred fears of a brewing trade war.

Trump's tariffs are set to take effect on March 4, targeting imports from Canada, Brazil, Mexico, South Korea, among others. European Commission President Ursula von der Leyen criticized the decision, emphasizing the negative impact on businesses and consumers and warning of retaliatory actions by the EU.

Impact on the global metal markets was immediate, with gold prices hitting record highs. Canada's Prime Minister Justin Trudeau also condemned the tariffs, hinting at a potential retaliatory response. Furthermore, additional focus is on imposing new standards for North American metal imports to curb minimally processed Chinese and Russian metals entering the U.S. market.