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Trade tensions between the United States and the European Union are rising again after US President Donald Trump’s decision to impose 25% duties on steel and aluminium imports from Europe.
A decision that immediately triggered a reaction from European institutions and, in particular, from French President Emmanuel Macron, who firmly reiterated the need for an equally decisive response from the EU. During a joint press conference in Porto with Portuguese Prime Minister Luís Montenegro, Macron declared that the European Union will have to respond with equivalent measures, introducing “reciprocal duties” on US imports of steel and aluminium. “If the American tariffs are confirmed, the Europeans will respond and then there will be reciprocal tariffs. This is because we must protect ourselves from those who offend us,” the French president said, stressing that there is no other choice than to react firmly.
According to Macron, Europe cannot appear weak in the face of such protectionist measures imposed by the United States and must maintain a united and determined position. The French president also expressed scepticism about the possibility of a diplomatic resolution to the issue, saying he had “very little hope” after his recent meeting at the White House with Trump. In his speech, Macron also highlighted the differences of opinion between Europe and the United States regarding fiscal and trade mechanisms. In particular, he accused the US administration of misunderstanding the European fiscal system, wrongly interpreting the value added tax (VAT) as a form of customs duty. “This vision is false,” Macron reiterated, stressing the need for a dialogue based on real data and not distorted interpretations. For his part, US President Donald Trump left no room for conciliatory interpretations.
Speaking from the Oval Office before a meeting with British Prime Minister Keir Starmer, Trump confirmed that the United States intends to apply reciprocal tariffs starting April 2. “The EU is tough on the United States on trade, we don’t like how they treat American companies,” Trump said, highlighting the need for a rebalance in economic relations between the two sides of the Atlantic. In a provocative speech, Trump also declared that “tariff” is his favourite word in the dictionary, because “we don’t want to be made fun of by the rest of the world”. To this statement, he then added a more personal and rhetorical touch, underlining that his favourite words of all time remain “God, love, family and wife”. The escalation of tariffs between the United States and the European Union risks triggering a new trade war that could have serious repercussions on both economies. The European steel industry, already strained by increasingly aggressive global competition, could suffer a severe blow if the American market were to close further. On the other hand, US companies operating in Europe could be penalized by European countermeasures, reducing their competitiveness in EU markets.
Another side effect could be an increase in prices for consumers and businesses, who would see the costs of raw materials and finished products rise due to the new tariffs. This scenario could trigger an inflationary spiral, negatively affecting economic growth in both the United States and Europe. Despite the firmness of Macron and Trump’s statements, the possibility of diplomatic mediation to avoid an uncontrolled escalation of the trade dispute remains open. The European Union could seek a compromise through dialogue with the US administration, perhaps involving other international actors such as the World Trade Organization (WTO) to find a shared solution.
However, the rhetoric used by both sides suggests that, at least in the short term, the standoff over tariffs could intensify, with significant effects on transatlantic economic relations. Europe will therefore have to prepare an effective response strategy, while trying to keep channels of communication open to avoid a definitive break with its American partner. In a global context already marked by geopolitical tensions and economic uncertainties, the dispute over tariffs between the US and the EU represents a further element of instability that could influence global economic dynamics in the coming months.
Alessandro Fiorentino