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US President Donald Trump threatened on Wednesday to escalate a global trade war by imposing further tariffs on European Union goods, as major US trading partners announced retaliatory measures against his existing trade barriers.
Just hours after Trump’s 25% tariffs on all US steel and aluminium imports took effect, he warned of additional penalties if the EU follows through on its plan to impose counter-tariffs on select US goods next month. “Whatever they charge us, we’re charging them,” Trump told reporters at the White House.
Trump’s aggressive trade policies have unsettled investors, consumers, and businesses, raising fears of an economic downturn. His actions have also strained relations with Canada, a key ally and trading partner, particularly as he has repeatedly made remarks about annexing the neighbouring country.
Canada, the largest foreign supplier of steel and aluminium to the US, announced 25% retaliatory tariffs on those metals, along with levies on computers, sports equipment, and other goods worth a total of $20 billion. The country had already imposed tariffs of a similar value in response to broader trade restrictions introduced by Trump.
“We will not stand idly by while our iconic steel and aluminium industries are being unfairly targeted,” Canada’s Finance Minister Dominic LeBlanc said. Canada’s central bank also lowered interest rates to mitigate potential economic fallout.
Trump’s trade protections extend 25% tariffs to all imports of steel and aluminium, as well as hundreds of related products, from nuts and bolts to bulldozer blades and soda cans. US Commerce Secretary Howard Lutnick confirmed that Trump would also introduce trade protections on copper.
The European Union, which is less exposed to the US trade measures, plans counter-tariffs targeting up to $28 billion worth of US goods, including dental floss, diamonds, bathrobes, and bourbon. The EU’s actions affect only a fraction of its exports to the US, according to Germany’s Kiel Institute, but industry groups warn that the measures could be devastating for sectors like liquor production.
Faridah Abdulkadiri
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