A spokesperson for the European Commission said in a quick response to the move:
“This decision adds additional uncertainty to the global economy and increases the costs of consumers and businesses on both sides of the Atlantic.”
Also referring to the ongoing transatlantic trade consultation, the spokesman said, “The increase in tariffs will also undermine continued efforts to reach negotiated solutions,” and said, “The EU is ready to impose measures in response to the latest increase in US tariffs as needed.”
The US president said taxes on imported steel “will further strengthen the US steel industry.”
In a post published on his Truth Social Platform, the US President added that aluminum obligations would also increase from 25% to 50%. Trump said both increases will come into effect on Wednesday, June 4th.
The announcement comes after the judiciary disrupted days of giving opposition to Trump’s customs policy, first blocking it in a decision by the U.S. International Trade Court, and ultimately withholding a new decision by the federal court of appeals, causing another green light to be disrupted.
Investments from Japan
Trump spoke on Friday at the Mont Valley Works Irvin plant in the US, located in the suburbs of Pittsburgh, Pennsylvania, and also discussed details of the deal being finalized for Japanese Japanese steel investment in the iconic American steel factory.
After returning to Washington, Trump revealed to reporters that he has not yet approved the deal. “I need to approve the final agreement with Japan, but we haven’t seen the final agreement yet, but they have a very big commitment and that’s a very big investment,” he said.
Trump initially promised to block Japanese steel makers from bidding to buy US steel, but he changed course and last week announced an agreement on partial sales to Nippon Steel.
The Japanese company never claimed to have changed its previous offer to buy US steel for $14.9 billion and get full control, but increased the amount it promised to invest in American plants and ensured that no one would fire it.
“We are here today to celebrate Anextraordinary’s contract that ensures that this historic American company will remain an American company,” Trump said at a rally in one of our steel warehouses, “You’re still an American company, right?”
The United Steelworkers Union said he was extremely concerned about this merger of US steel and the impact that foreign competitors will have on national security, our members, and the communities we live and work in.
Steel prices have risen 16% since Trump became president in mid-January, according to the government’s producer price index.
According to the US Department of Commerce, as of March 2025, the US costs much more than the European prices ($690) or China ($392) and costs $984 per metric tonne in the US as of March 2025.
Among the partners most affected by the possibility of increased obligations for these materials are the EU. This had just acquired a July postponement of an increase in general obligations for export to the US and Canada.
“Drawing out the efficient, competitive, reliable cross-border supply chains, as we have in steel and aluminum, is sold at a high cost to both countries,” commented Candice Line, president of the Canadian Chamber of Commerce.
Last year, the US produced roughly three times as much steel as its imports, with Canada, Brazil, Mexico and South Korea becoming the main sources of imports. Analysts believe that his obligation to go back to Trump’s first term has helped strengthen the country’s steel industry.
The fate of US steel, once the world’s largest steel company, was able to weigh in the medium-term Republican elections, which were always dependent on Pennsylvania’s decisive state and manufacturing.
