Clash between EU and US is inevitable in a trade war

The European Union may impose preliminary measures to protect its steel industry from steel and aluminum imports, initially considering as early as July, although a full investigation will take nine months, said EU Trade Commissioner Cecilia Malmstrom.

Trump has justified the metals tariffs, citing national security, while Malstrom does not know how trade with the EU could pose a threat. She regrets that Washington and Brussels were unable to reach a settlement. “We put forward a constructive agenda, next steps, discussions on trade irritants, US concerns, and said we could go for a small trade agreement based on tariffs, including cars and auto parts. The USA rejected this too.

The US is also considering introducing a similar tariff on cars, which Malmstrom said could lead to "even more" retaliation than steel. "If this happened, it would be very unfortunate, it would have serious consequences not only in Europe, but throughout the world."

Trump also triggered a crisis in the WTO by blocking the appointment of appellate courts, which Malmstrom said would ultimately end the dispute system.