[By Guancha Observer Network, Xiong Chaoyi] On May 30th local time, when visiting a factory of US Steel Corporation in Pennsylvania, US President Trump announced that the tariffs on imported steel and aluminum would be increased from 25% to 50%. In response, the EU side stated that it was prepared to take retaliatory measures against Trump's latest steel and aluminum tariff threats.
According to reports by Deutsche Presse-Agentur (DPA) and Politico EU on May 31st local time, an EU Commission spokesperson stated in an email on the same day: "We deeply regret the US announcement to increase the steel import tariff from 25% to 50%. This decision further increases global economic uncertainty and raises costs for consumers and businesses on both sides of the Atlantic."
"The increase in tariffs also undermines efforts to reach negotiated solutions," the statement said. "In good faith, the EU suspended its countermeasures on April 14th to create space for continued negotiations. The EU is prepared to take countermeasures, including responding to the recent increase in US tariffs."
This statement mentioned: "The EU Commission is currently finalizing consultations on expanded countermeasures. Existing and additional EU (counter) measures will automatically come into effect on July 14th - unless circumstances require earlier implementation."
On May 30th local time, Trump held a rally at a factory of US Steel Corporation in Pennsylvania. Bloomberg News
In March this year, Trump announced a 25% tariff on all imported steel and aluminum, which officially took effect on March 12th local time. In response, the EU Commission announced on March 9th that it would impose a 25% tariff on US soybeans, diamonds, orange juice, poultry, motorcycles, steel, aluminum, tobacco, and other products worth 21 billion euros.
It is noteworthy that the EU's countermeasure targets the steel and aluminum tariffs implemented by the Trump administration, not a response to the so-called "reciprocal tariffs" later proposed by Trump. On April 2nd local time, Trump announced the so-called "reciprocal tariffs", raising tariffs on EU countries to 20%. Days later, Trump announced a 90-day deferral of taxes for most countries, retaining a "baseline tariff" of 10% during this period.
Regarding this, Ursula von der Leyen, President of the European Commission, stated in a declaration on April 10th: "We have noted President Trump's statement, and we hope to give negotiations a chance. While finalizing the EU countermeasures (which have been strongly supported by EU member states), we will suspend the implementation of countermeasures for 90 days." She emphasized: "If the negotiation is unsatisfactory, we will take countermeasures... Preparations for further countermeasures continue."
On May 30th local time, Trump stated that starting early June, the tariffs on imported steel and aluminum would be raised from 25% to 50%, claiming that this move would help protect American workers.
Trump stated that the increase in steel tariffs would benefit the operation of new enterprises in the United States, "I believe that these people who just made this investment are very happy because it means no one can take away your industry. When the tariff was 25%, they could barely cross that threshold, but if it rises to 50%, they cannot pass it anymore."
Politico EU reported that Bernd Lange, Chairman of the European Parliament's Trade Committee, stated on May 31st that if Trump really carries out this tariff threat, the EU should immediately implement countermeasures.
"For unreasonable steel and aluminum tariffs, we are ready with our responses. If what has been announced becomes a reality, we should immediately implement these counter-tariffs," Lange wrote in a post on the social media platform X.
Beate Lang, Chairman of the European Parliament's Trade Committee, material photo
Separately, according to previous reports, Ursula von der Leyen, President of the European Commission, proactively contacted US President Trump by phone on May 25th local time. Trump agreed to delay the threat of imposing a 50% tariff on all EU goods and extended trade negotiations between the US and the EU until July 9th.
According to a report by the Financial Times on May 28th local time, despite market optimism about the progress of US-EU negotiations, EU senior officials privately painted a bleak picture of the negotiation scenario. EU trade negotiators admitted that they were unlikely to overturn Trump's "reciprocal tariffs," and warned European governments that larger concessions would be needed to avoid a full-scale trade war.
Although negotiators hoped to reduce tariffs, EU officials and diplomatic sources revealed that the EU Commission had informed member states that Trump's policy of imposing a 10% "reciprocal tariff" on almost all goods might continue. This assessment marks a significant change in the EU's attitude toward negotiations. Previously, unlike the UK, the EU refused to make unilateral concessions solely to limit tariffs to the 10% "baseline tariff."
Three diplomats said that France was the only EU country that opposed unilateral concessions and acceptance of a 10% tariff, while several other member states previously held similar positions. European officials and diplomats stated that due to the market's failure to constrain Trump's aggressive trade policies as expected, the EU faces a dilemma: either compromise or retaliate. A recent survey by the EU official public opinion agency "Eurobarometer" showed that 80% of EU citizens support taking countermeasures when other countries increase import tariffs on the EU to defend EU interests.
However, the "big stick" of tariffs wielded by Trump has also faced much pressure and received great skepticism.
On May 28th local time, the US Court of International Trade blocked the tariff policy announced by Trump on "Liberation Day" on April 2nd, ruling that Trump's tariff policy was "ultra vires." According to reports by the Associated Press and Reuters, the US Court of International Trade in New York stated on the same day that the US Constitution grants Congress exclusive power to regulate trade with foreign countries, and the emergency powers claimed by the president to protect the US economy cannot override these powers.
In the past few months, Trump's tariff policies have changed frequently: repeatedly proposing high tariff threats, but ultimately ending with compromises. This has caused Wall Street to experience historically roller-coaster fluctuations. Now, investors have started to hold a cautious attitude towards his remarks and sarcastically summarize his tariff policies as "timid trades."
The term "timid trades" was first coined by a columnist for the Financial Times as an abbreviation for "Trump always chickens out." On May 28th local time, when Trump first heard this description, he lost his composure directly.
Trump blackens his face upon hearing "timid trades" Video screenshot
According to reports by CNBC, Trump seemed to hear the term "timid trades" for the first time at a White House press conference and sharply refuted it, insisting that he had not backed down on trade issues, everything was just negotiation tactics.
"I've never heard of this term... Don't say everything you want, this question is too disgusting," Trump angrily said when a CNBC reporter asked him a question.
Since Trump returned to power, his "tariff storm" has swept across the globe, but it can be said to have caused "self-inflicted wounds." According to reports by The Washington Post, US Treasury Secretary Janet Yellen stated in an interview on May 18th that Walmart, a major US retailer, would absorb part of the tariff costs itself, but she also admitted that some of the added tariff costs would eventually fall on consumers.
Due to the increase in US government debt and interest payments, Moody's, an international credit rating agency, recently decided to downgrade the US sovereign credit rating from Aaa to Aa1 and adjust the outlook from "negative" to "stable." Fitch and Standard & Poor's, the other two major international credit rating agencies, have downgraded the US sovereign credit rating in 2023 and 2011 respectively, and the US has now lost the highest Aaa rating in all three major international credit rating agencies.
This article is an exclusive contribution by the Guancha Observer Network and cannot be reprinted without permission.
Original source: https://www.toutiao.com/article/7510802600426553907/
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