German Finance Minister: EU Should Respond To US Tariffs

Forex News

President Donald Trump's administration is planning to impose tariffs on European steel and aluminum imports after failing to win concessions from the European Union, a move that could provoke retaliatory tariffs and inflame Transatlantic trade tensions. The tariffs are likely to go into effect on the EU with an announcement by Friday's deadline.

Olaf Scholz (German Finance Minister) stated that there are no signs of a de-escalation in the trade dispute between EU and the US, adding the EU's response to any US tariffs must be strong. "Our response should be clear, strong and smart," the politician said.

The EU has already said it will respond by imposing tariffs on US products such as motorcycles and jeans. The European Commission, which coordinates trade policy for the 28 EU members, has said the EU will set duties on 2.8 billion euros ($3.4 billion) of US exports, including peanut butter and denim jeans, if its metals exports to the United States worth 6.4 billion euros ($7.5 billion) are subject to tariffs.