Olaf Scholz vows response to Donald Trump's tariff plans

In a speech to the German parliament in Berlin, Olaf Scholz vowed a response to Donald Trump’s tariff plans.

Trump has pledged 25% tax on foreign steel and aluminium, with the aim of giving local producers relief from fierce global competition and enabling them to charge higher prices.

But the German Chancellor has slammed the initiative.

"I have already mentioned the American tariffs that are threatening us, possibly on steel and aluminum. If the U.S. leaves us no other choice, then the European Union will react united. As the largest market in the world, with 450 million citizens, we have the power to do so,'' Scholz said.

''I hope, however, that we will be spared the wrong path of tariffs and counter tariffs. Ultimately, trade wars always cost both sides prosperity," he added.

The U.S. President put similar tariffs in place during his first presidency - a move which marred relations with important American allies.

It also saw cost increase for “downstream’’ manufacturers that purchase the metals.