EU Vows to Respond to Trump’s Metal Tariffs

Good morning. The EU pushes back against Trump’s latest tariff move. Hedge funds are pocketing a big chunk of their clients’ gains. And LA loves Luka Doncic. Listen to the day’s top stories.

Donald Trump warned that tariffs on steel and aluminum “may go higher” after imposing a 25% levy on all imports of the metals from next month. The European Union was quick to respond, vowing to take “firm and proportionate” countermeasures. While he didn’t include exemptions for trading partners, Trump said he may consider a break for Australia.

The tariff plan probably won’t arrest decades of declining market share and stagnating metals production in the US. Despite the levies imposed during Trump’s first-term in 2018, steel output has continued to fall, and the industry still struggles to compete with Chinese rivals. Read our explainer on why Trump wants higher tariffs on the metals.

Stocks struggled for direction as the latest tariff news spurred caution among traders. They’re looking ahead more to testimony from Federal Reserve Chair Jerome Powell and to key US inflation data this week.