Canada and the European Union responded quickly to President Donald Trump’s new tariffs on aluminum and steel imports, imposing hefty retaliatory measures on a wide range of U.S. products, from textiles and electronics to bourbon and motorcycles.

Canada, the largest steel and aluminum supplier to the U.S., announced Wednesday that it would apply a 25% counter-tariff on steel products while also increasing duties on items such as tools, computers, display monitors, sports equipment, and cast-iron goods.

Meanwhile, the EU plans to hike tariffs on American beef, poultry, whiskey, peanut butter, jeans, and motorcycles—targeting industries based in both Republican and Democratic strongholds.

Economic Impact & Global Response
The retaliatory tariffs are expected to cost businesses billions, leading to either reduced profits or higher prices for consumers.

“Prices will rise in both Europe and the United States, and jobs are at risk,” said European Commission President Ursula von der Leyen. “Tariffs are taxes. They hurt businesses and, even more, they hurt consumers.”

The EU strategically targeted products from key U.S. states, affecting goods from Kansas and Nebraska (beef and poultry), Alabama and Georgia (wood products), and Illinois (soybeans). The European spirits industry has also been caught in the crossfire, with whiskey producers expressing concerns over the impact on their export markets.

Could There Be a Trade Deal?
Despite the escalating tensions, von der Leyen stated that the EU remains open to negotiations.

Canada’s incoming Prime Minister Mark Carney also signaled a willingness to meet with Trump, provided there is mutual respect and a broader trade discussion. “The greatest economic and security partnership in the world can be renewed and relaunched—but only if we approach it comprehensively,” Carney said.

Trump's 25% tariffs on all steel and aluminum imports go into effect

The American Chamber of Commerce to the EU warned that continued tariff battles would harm jobs, economic growth, and transatlantic security, urging both sides to seek a resolution.

A Familiar Pattern
This is not the first time Trump has imposed steep tariffs on the EU’s steel and aluminum exports. Similar actions during his first term prompted European countermeasures, including higher tariffs on U.S. whiskey, peanut butter, and jeans.

The EU’s response this time will occur in two phases:

April 1: The bloc will reinstate tariffs that were previously in place between 2018 and 2020 but suspended under the Biden administration.
April 13: Additional duties will be imposed on $19.6 billion worth of U.S. exports.
EU Trade Commissioner Maroš Šefčovič, who traveled to Washington last month to discuss trade concerns, said the EU had tried to prevent escalation. “I argued against unnecessary measures and countermeasures,” he said, “but it takes two to negotiate.”

Canada’s Countermeasures
As of 12:01 a.m. Thursday, Canada has implemented 25% tariffs on steel imports worth CAD 12.6 billion (USD 8.7 billion) and aluminum imports worth CAD 3 billion (USD 2 billion). Additional U.S. goods totaling CAD 14.2 billion (USD 9.9 billion) will also face new tariffs, bringing the total to CAD 29.8 billion (USD 20.6 billion).

These tariffs come on top of the CAD 30 billion (USD 20.8 billion) in countermeasures that Canada imposed on March 4 in response to previous Trump administration tariffs, which were delayed by a month.

Steel Industry Concerns
The European steel industry is bracing for significant losses. The EU could lose up to 3.7 million tons of steel exports, according to Eurofer, the European steel association. The U.S. is the EU’s second-largest export market for steel, accounting for 16% of total exports.

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Despite trade tensions, the EU and the U.S. maintain a robust economic relationship, with annual trade between the two totaling approximately $1.5 trillion—roughly 30% of global trade. While the EU enjoys a surplus in goods exports, it points out that the U.S. has a trade surplus in services, helping to balance the overall economic relationship.

Source: With input from agency