The European Union and Canada have quickly retaliated against President Donald Trump’s recent imposition of 25% tariffs on US steel and aluminium imports. The EU announced that its countermeasures will affect up to €26bn of American goods starting in April. These new tariffs target a broad range of products, including items such as bourbon whiskey, jeans, and Harley-Davidson motorcycles, with additional levies on an extra €18bn of US exports. There is potential to expand the scope further, affecting up to another €3.5bn of goods.
Meanwhile, Canada has responded by levying tariffs on nearly C$30bn ($21bn) of US goods. Canadian Finance Minister Dominic LeBlanc condemned the US measures as “completely unjustified, unfair and unreasonable.”
Commission President Ursula von der Leyen criticized Trump's tariffs, saying they disrupt supply chains, inject uncertainty into the economy, and ultimately harm consumers and jobs. The retaliatory tariffs come amid growing concerns that Trump's aggressive trade policies could trigger a wider trade war, with significant impacts on global markets.
US tariffs, which were part of an effort to boost domestic manufacturing by penalizing foreign competitors, have already shaken investor confidence, following a turbulent day on Wall Street. The broader implications of these measures are expected to spur further negotiations, as both the EU and Canada push for the removal of protectionist barriers that are disrupting international trade.
