European Commission President Ursula von der Leyen expressed her commitment on Tuesday to implement “firm and proportionate countermeasures” following U.S. President Donald Trump‘s announcement of tariffs on all steel and aluminum imports, heightening concerns of a potential trade conflict.

Trump issued proclamations late Monday to increase tariffs on all steel and aluminum imports to 25%, with no exceptions or exemptions. A White House representative indicated that these measures would come into effect on March 4.

In her statement, von der Leyen conveyed her disappointment regarding the U.S. decision, emphasizing that tariffs are detrimental to businesses and consumers alike. Over the past decade, EU steel exports to the U.S. have averaged approximately 3 billion euros ($3.10 billion) annually.

“Unjustified tariffs on the EU will not go unanswered; they will prompt firm and proportionate countermeasures. The EU will take action to protect its interests,” she stated.

While von der Leyen did not specify the nature of the response, one possibility could involve reinstating the tariffs that the EU had previously imposed in 2018, which were suspended under a truce negotiated between von der Leyen and former U.S. President Joe Biden. Currently, EU tariffs on U.S. goods, including bourbon, motorcycles, and orange juice, are on hold until the end of March.

EU trade chief Maros Sefcovic characterized the U.S. decision in a speech at the European Parliament as a “lose-lose scenario.” He noted that the Commission is currently evaluating the extent of the U.S. measures and determining the appropriate response from the EU.

Trump’s recent trade actions have driven gold prices to an all-time high, reaching $2,942.70 during early trading on Tuesday, fueled by increased safe-haven demand. The European Commission is scheduled to gather insights from its 27 member states regarding the EU’s response during a video conference of trade ministers set for Wednesday.

The steel and aluminum tariffs that Trump enacted in 2018 were lifted by his successor, Joe Biden, but were subsequently replaced with import quotas.

EU steel manufacturers have experienced a decline in export volumes to the United States, dropping by approximately 1 million tons to 2.2 million from 2019 to 2024. A significant concern within the industry is that the 15 million tons imported by the United States last year from non-EU countries may be redirected to the EU if new tariffs are implemented.