French minister says EU could escalate response to US tariffs

France’s Minister for European Affairs, Benjamin Haddad, has suggested that the European Union could take stronger action in response to new US tariffs, though he emphasised that a trade war would benefit no one.

US President Donald Trump’s decision to raise tariffs on all steel and aluminium imports came into effect on March 12, intensifying Washington’s efforts to reshape global trade rules in its favour, Caliber.Az reports, citing foreign media.

The move has provoked swift retaliation from Europe.

In response, the European Commission announced it would introduce countermeasures worth €26 billion ($28.33 billion) on US goods from next month.

It confirmed that the current suspension of tariffs on American products would be lifted on April 1, with a fresh set of retaliatory measures set to be proposed by mid-April.

"We have the means to go further, if we want," Haddad told TF1 TV. "For example, if it came to a situation where we had to go further, digital services or intellectual property could be included," he added.

To recall, US has implemented a 25 percent tariff on all metal imports, effective from March 12, as global markets and governments struggle to keep up with a flurry of trade-related announcements by Donald Trump in recent days.

On March 11, Trump initially threatened to impose a 50 percent tariff on Canadian aluminium and steel imports but later reversed the decision. His senior economic adviser, Peter Navarro, confirmed that the measure would not go ahead following Ontario’s agreement to temporarily suspend an electricity export surcharge to certain US states.

Last week, Trump imposed heavy tariffs on Canada, Mexico and China before postponing some of them until April 2. He has also signalled plans to introduce “reciprocal” tariffs on the European Union, Brazil and South Korea from early next month.

The unpredictability of Trump’s “America First” trade policy has unsettled financial markets, with investors unsure whether the tariffs will be permanent or used as leverage in negotiations. The S&P 500 index fell by 0.8 percent on March 11, following a 2.7 percent drop on March 10, while the Nasdaq Composite dipped 0.2 percent after slumping 4 percent the previous day.

While the tariffs apply globally, they will significantly impact Canada, which supplies around half of US aluminium imports and a fifth of its steel imports. Other key steel exporters to the US include Brazil and Mexico, while aluminium is also sourced from the United Arab Emirates and South Korea.

By Aghakazim Guliyev