Global Trade Tensions Rise as Canada and EU Respond to U.S. Steel and Aluminum Tariffs
Canada and the European Union launch retaliatory tariffs in response to the U.S. imposing 25% duties on steel and aluminum imports, escalating international trade conflicts.
HIGHLIGHTS
- Canada and the European Union (EU) have implemented retaliatory tariffs following the U.S. enforcement of a 25% tariff on all steel and aluminum imports.
- Canada introduced 25% tariffs on approximately C$29.8 billion ($20.8 billion) worth of U.S. goods, targeting sectors from steel and aluminum to consumer electronics and sports equipment.
- The European Commission announced tariffs affecting U.S. products valued up to €26 billion ($28.4 billion), including boats, bourbon, and motorcycles.
- This escalation marks a significant chapter in the ongoing trade disputes involving the U.S. and key global partners such as China, Canada, and Mexico.
In a decisive move, Canada and the European Union responded on Wednesday as the United States implemented 25% tariffs on steel and aluminum imports. These countermeasures aim to mirror the U.S. tariffs and protect domestic industries.
Canada's Finance Minister Dominic LeBlanc confirmed that the new tariffs, effective from 12:01 AM Eastern Time Thursday, will apply to a broad range of U.S.-origin products totaling nearly C$29.8 billion ($20.8 billion), including steel, aluminum, computers, and sports equipment.
The European Commission, acting on behalf of the EU, declared its intention to impose tariffs on U.S. goods worth up to €26 billion ($28.4 billion). The tariffs will cover diverse products such as boats, bourbon whiskey, and motorcycles, with the first phase commencing on April 1 and additional measures expected mid-April after consultations.
This tit-for-tat tariff exchange intensifies the ongoing trade war, contributing to market uncertainty, diminishing business and consumer confidence, triggering stock market volatility, and raising concerns about potential economic downturns.
Notably, President Trump softened his stance on doubling tariffs on Canadian steel and aluminum following Ontario’s withdrawal of a proposed 25% export tax on electricity, demonstrating the fluid nature of these trade negotiations.
Moreover, the U.S. plans to broaden its tariff strategy by introducing "reciprocal" tariffs on countries imposing levies on American goods, having already doubled tariffs on imports from China.
UPDATE—March 12, 2025: This article has been revised to incorporate Canada's retaliatory tariffs.
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