Tariff hike sparks global criticism, with EU, UK, Canada and Australia warning of economic fallout
The European Union has sharply criticised US President Donald Trump’s surprise move to double tariffs on imported steel to 50%, warning it may reinstate and expand countermeasures as early as mid-July if no resolution is reached.
Speaking at a rally in Pennsylvania on Friday, Trump announced that the new 50% rate—up from the current 25%—would take effect on 4 June. He framed the move as part of a broader push to “secure the steel industry in the United States,” pledging no layoffs or outsourcing, and promising a US$5,000 bonus for every American steelworker.
The announcement triggered swift condemnation from key trading partners.
“We strongly regret the announced increase,” a European Commission spokesperson said on Saturday, warning that the tariff hike “adds further uncertainty to the global economy” and “undermines ongoing efforts to reach a negotiated solution.” The EU had paused its previous retaliatory tariffs on 14 April to allow space for talks but said those measures—alongside new ones—will “automatically take effect on 14 July, or earlier if circumstances require” unless a deal is reached.
The move also cast doubt over the UK’s still-pending zero-tariff agreement on steel and aluminium with the US. British steelmakers called the hike “yet another body blow,” while a UK government spokesperson confirmed talks with Washington were ongoing “to provide clarity for industry.”
Canadian unions likewise decried the decision. Marty Warren, National Director of the United Steelworkers union in Canada, called the announcement a “direct attack on Canadian industries and workers,” adding that “thousands of Canadian jobs are on the line.”
In Australia, Trade Minister Don Farrell described the tariff as “unjustified” and “an act of economic self-harm.” He said Australia would continue to argue for an exemption without retaliating, warning that the hike would ultimately hurt “consumers and businesses who rely on free and fair trade.” Finance Minister James Paterson echoed the sentiment, saying Prime Minister Anthony Albanese must “robustly stand up for Australia’s national interest” during his upcoming meeting with Trump at the G7 summit in Canada, set for 15–17 June.
Despite the growing backlash, Trump said the measure was necessary to reduce reliance on foreign steel, citing an agreement—still not finalised—between US Steel and Japan’s Nippon Steel that would involve a US$14bn investment in domestic production. He claimed the deal would ensure the company “remains American,” though details remain scarce.
The tariff hike coincides with escalating legal pressure on Trump’s broader trade strategy. Earlier this week, the US Court of International Trade ruled that Trump had exceeded his authority in imposing certain country-specific tariffs under the International Emergency Economic Powers Act. While the ruling was temporarily stayed by an appeals court, it has complicated the administration’s legal standing.
The US currently imports roughly a quarter of its steel, with China, India and Japan among the world’s largest producers. Since Trump’s return to office, he has revived his use of tariff threats as leverage in trade negotiations, recently floating a 20% tariff on most EU goods—later reduced to 10%—before extending a deadline for talks to 9 July.
For now, the EU is finalising consultations on its counter-tariff strategy. “We have our countermeasures ready,” said Bernd Lange, chair of the European Parliament’s trade committee. “If what has been announced really becomes reality, then we should apply these counter-tariffs immediately.”
