Trump Vows to Match Retaliatory Tariffs from EU and Canada
Trump Vows to Match EU and Canada’s Retaliatory Tariffs, Escalating Trade War
U.S. President Donald Trump has pledged to impose further tariffs after his latest decision to introduce import taxes on steel and aluminum triggered retaliation from the European Union (EU) and Canada.
In response to the countermeasures, Trump reaffirmed his stance, warning that he would unveil “reciprocal” tariffs next month on various countries.
“Whatever they charge us with, we’re charging them,” he said, signaling a deepening trade conflict that has unsettled global markets and raised concerns over economic impacts, including in the U.S.
Escalating Trade Tensions
On Wednesday, Trump expanded U.S. tariffs on steel and aluminum, enforcing a 25% duty and ending exemptions for certain countries. This move followed a prior decision to raise levies on Chinese imports by at least 20%.
Beyond metals, Trump has threatened tariffs on other goods, including copper, lumber, and automobiles.
Leaders in Canada and Europe condemned the tariffs as unjustified and swiftly responded with their own duties on American products. However, key U.S. metal suppliers such as the UK, Australia, Mexico, and Brazil have held off on immediate retaliation.
UK Prime Minister Sir Keir Starmer acknowledged the concerns over global tariffs but emphasized a pragmatic approach, saying, “We are negotiating a deal that includes tariffs, but all options remain on the table.”
Retaliation from Canada and the EU
Canada announced a 25% tariff on nearly C$30 billion ($20 billion; £16 billion) worth of U.S. goods, including steel, computers, and sports equipment, effective Thursday. Prime Minister-designate Mark Carney expressed willingness to renegotiate trade terms with the U.S. but insisted on “respect for Canadian sovereignty.”
The EU also escalated the trade standoff, confirming it would raise levies on up to €26 billion ($28 billion; £22 billion) worth of U.S. exports—targeting items such as boats, bourbon, and motorcycles—beginning April 1.
European Commission President Ursula von der Leyen described the response as “strong but proportionate,” emphasizing that the EU remained open to meaningful dialogue.
“Tariffs are taxes. They are bad for business and worse for consumers,” she warned, adding that the economic fallout could threaten jobs and push prices higher.
Impact on Markets and Businesses
Trump argues that boosting domestic steel and aluminum production is a long-term goal, but critics warn the immediate effect will be higher costs for U.S. consumers and potential economic slowdowns.
Several major food producers, including Quaker Oats and Folgers coffee, have requested tariff exemptions for essential imports like cocoa and tropical fruits, which are unavailable from U.S. sources. According to a letter seen by Reuters, PepsiCo, Conagra, and J.M. Smucker also urged the administration to reconsider certain trade restrictions.
The EU estimates that the new U.S. tariffs will impact around 5% of its total exports to America, while nearly 90% of Canada’s steel and aluminum shipments rely on the U.S. market.
Stock markets reacted with mixed signals. While the Dow Jones dipped 0.2%, the S&P 500 climbed 0.5%, and the Nasdaq gained 1.2% following two days of sharp losses.
During a White House appearance alongside Irish Prime Minister Micheál Martin, Trump remained steadfast in his position, expressing frustration over EU trade policies. He cited disputes over penalties imposed on Apple and European regulations he claimed disadvantage U.S. farm products and cars.
“They’re doing what they should for the European Union, but it creates ill will,” he remarked.
Reiterating his threat to impose tariffs on European cars, Trump concluded, “We’re going to win that financial battle.”
