Investing.com - The European Union will respond to fresh tariffs from the Trump administration, European Commission President Ursula von der Leyen has vowed, in a sign of increasing trade tensions between the bloc and the U.S.
In a statement released on Tuesday, von der Leyen said she deeply regrets U.S. President Donald Trump's decision to impose sweeping 25% levies on all steel and aluminum imports, including materials coming from the EU. She described tariffs as "taxes," arguing that they are "bad for business, worse for consumers."
"Unjustified tariffs on the EU will not go unanswered -- they will trigger firm and proportionate countermeasures," von der Leyen said, adding that the 27 member states of the union will act to "safeguard its economic interests."
President Trump signed dual executive orders imposing the tariffs on Monday, wiping away previous exceptions for allies like Canada, Mexico, South Korea and others that were put in place during the Biden administration.
The levies, as well as measures to eliminate hundreds of thousands of product-specific tariff exclusions, are set to apply to millions of tons of imports of the materials. The measures will come into effect from March 4, according to media reports citing a White House official.
Trump will also create a new North American standards aimed at lowering minimally-processed steel and aluminum imports from China and Russia that can bypass certain tariffs. Other products using foreign-made metals are also covered by the tariffs.
Saying the changes would extend to all U.S. trading partners "without exemptions," Trump called the move a "big deal" and part of a broader push to "make America rich again."
Investors are now gauging if Trump will follow through on a separate threat to impose reciprocal tariffs on Tuesday or Wednesday, with worries swirling around a further ratcheting up in protectionism in global trade policies.