Contrary to yesterday’s reports by Reuters, the European Union has not retaliated against US tariffs yet, but the EU Commission President did announce in a press conference that the EU is ready to enact 0% tariffs on all industrial goods with the US. The EU responded to President Trump’s initial declaration of his global trade war by saying that Europe would only retaliate if negotiations on the trade dispute fail to lead to a positive result.
US Treasury Scott Bessent stated that more than 50 countries are currently in negotiations with the US over a new trade deal. These are all bilateral negotiations.
Yesterday, the European Commission presented its Steel and Metals Plan to the industry. The plan intends to supposedly help the industry by decarbonising, as part of its €100 billion plan to decarbnonsie European industries. It will also support the industry in increasing its connections with the European grid. The EU’s share of global steel production is at around 7 and 8% with aluminum production share just at 3.8%. The EU is only 46% self-sufficient on aluminum and only 25% self-sufficient on nickel. Energy costs are the major issue for the European steels and metals industry but there is no plan by the European Commission to bring energy prices down.
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