The United States has doubled tariffs on steel imports, signaling a renewed commitment to protectionist trade policies. The move, announced by President Trump at a Pennsylvania steel factory, increases the tariff from 25% to 50%.

The decision has drawn strong condemnation from the European Commission, which warns of increased uncertainty and costs for consumers and businesses. The EU is prepared to retaliate with tariffs on American products.

President Trump claims the tariffs are necessary to revitalize the American steel industry, particularly in states like Pennsylvania. The aim is to make foreign steel more expensive, thereby boosting domestic suppliers.

However, the tariffs are expected to negatively impact various sectors, including European steel companies like Tata Steel, which has a significant presence in the Netherlands. Tata Steel anticipates a ‘financially significant effect’ on its Dutch branch in IJmuiden, as 12% of its turnover comes from the US.

The tariffs also exacerbate existing challenges for Tata Steel, which is already facing high energy costs and competition from Asia, leading to planned job cuts.

Furthermore, higher steel prices in the US, already more expensive than in Europe and China, could harm American industries that rely on steel, such as car manufacturers. Despite a trade deal with the UK, the US continues to impose tariffs on British steel imports, albeit at a lower rate of 25%.