EU Alarmed as U.S. Threatens Steel & Aluminum Tariff Hikes—Trade War Looms

Brussels braces for impact as Washington sharpens its protectionist claws. The European Union—already juggling inflation and energy crises—now faces a fresh headache: potential U.S. tariff hikes on steel and aluminum. No official numbers yet, but whispers suggest hikes could mirror 2018’s 25% steel and 10% aluminum duties.

Trade tensions reignite

This isn’t the first rodeo. The EU barely survived Trump-era metal tariffs, scrambling to negotiate quotas. Now, with U.S. midterms looming and domestic producers lobbying, history threatens to repeat. European automakers and aerospace firms—heavily reliant on these materials—are sweating.

Markets react (or overreact?)

Commodity traders are already front-running the news, because nothing says 'stable investing' like betting on geopolitical spats. Meanwhile, EU officials mutter about 'asymmetric retaliation'—code for 'we’ll tax your bourbon and Levi’s again.'

Bottom line: When elephants fight, the grass gets trampled. And in global trade, the grass is always your portfolio.

U.S. may violate current trade agreements with the EU, anonymous sources reveal

EU warns on potential US steel tariff expansion
EU officials are raising concerns that a potential expansion of US tariffs on EU steel and aluminum WOULD undercut the spirit of their recent trade agreement, especially the agreed-upon 15 percent tariff ceiling.

Brussels is… pic.twitter.com/BENmAxwaqS

— Danny Naz (@ThePupOfWallSt) November 17, 2025

Bloomberg reported receiving tips from anonymous sources that the EU is concerned the U.S. may revise tariff regulations on EU products to a higher level. U.S. President Donald TRUMP and European Commission President Ursula von der Leyen agreed to eliminate the bloc’s tariffs on U.S. products. They set a 15% tariff limit on most EU products shipped to the U.S. The nations agreed on the current tariffs to restore a trade balance and create a predictable environment for businesses and governments on both sides. 

The European Union still faces a 50% tariff on aluminum and steel products, and the list now exceeds 400 items. The EU argues that the list of these items is challenging and could attract similar moves in other sectors. 

The officials are deeply concerned that the range of goods affected by the tariffs and the potential for higher levies on different industries could exceed the existing agreement when Washington revises the list of products subject to higher tariffs. Washington updates the list several times a year.

The European Union officials are urging the U.S. to avoid implementing new policies that could jeopardise the trade relationship between the two parties sealed by their recent trade agreement. New tariffs could disrupt the stability and predictability of trade between the two jurisdictions. The 15% tariff ceiling applies to cars, pharmaceuticals, chips, and wood, a rate that the EU wants to maintain as the standard in other industries that the U.S. might target for higher levies.

The sources also revealed that the commission handling trade matters for the bloc’s member states also wants a new system that would allow a certain amount of metal exports to receive lower levies. The commission also aims to involve relevant stakeholders alongside the U.S. in a mechanism to regulate trade better and prevent cheap imports from overwhelming their markets.

U.S. pushes EU to agree on tariffs through a legally binding contract

The anonymous sources suggest that the U.S. has been urging the European Union to reach a consensus and sign a legally binding agreement similar to those of other countries. According to the sources, the U.S. sent proposals to Brussels earlier this year in an effort to revise EU regulations that harm American businesses. 

However, the sources indicate that the European Union is opposed to a legally binding contract because it would complicate its approval procedures, necessitating greater involvement from both member states and the parliament. The anonymous tip highlighted that the EU even shared a draft action plan with the U.S. last week to show its continued support for the deal. 

The tariff conflict could shake the global market as they have historically. Trump announced that each American is set to receive a tariff dividend worth $2,000. Cryptopolitan recently reported that the dividend would see an upsurge in stocks and crypto, citing the COVID-era stimulus cheque that sent asset prices wild.

However, Scott Bessent, U.S. Treasury Secretary, revealed in an interview that the proposed $2,000 tariff checks on Americans would need congressional approval. He added that Americans receiving over $100,000 a year do not qualify for the dividend.

The smartest crypto minds already read our newsletter. Want in? Join them.