The European Union will impose counter tariffs on €26 billion ($28bn) worth of US goods starting next month, escalating a global trade war in response to US tariffs on steel and aluminium.
US President Donald Trump's increased tariffs of 25% on all steel and aluminium imports have taken effect as prior exemptions, duty-free quotas, and product exclusions expired. The European Commission announced that it will end the current suspension of tariffs on US products on 1 April and will introduce a new package of countermeasures on US goods by mid-April.
The suspended tariffs apply to products ranging from boats to bourbon to motorbikes. The EU will start a two-week consultation to select other product categories. The new measures will target around €18bn in goods, aiming to ensure that the total value of the EU measures corresponds to the increased value of trade impacted by the new US tariffs. Proposed target products include industrial and agricultural items such as steel and aluminium, textiles, home appliances, plastics, poultry, beef, eggs, dairy, sugar, and vegetables.
European Commission President Ursula von der Leyen stated that the countermeasures will be introduced in two steps, starting on 1 April and fully in place by 13 April. She emphasized the EU's readiness for meaningful dialogue and entrusted Trade Commissioner Maroš Šefčovič to resume talks with the US to explore better solutions.
President Trump's actions to protect US steel and aluminium producers restore effective global tariffs of 25% on all imports of the metals and extend the duties to hundreds of downstream products made from the metals, from nuts and bolts to bulldozer blades and cans. The run-up to the tariff deadline included drama as Mr. Trump threatened Canada with doubling the duty to 50% on its steel and aluminium exports to the US. However, Mr. Trump backed off those plans after Ontario Premier Doug Ford agreed to suspend his province's decision to impose a 25% surcharge on electricity exports to Minnesota, Michigan, and New York until earlier US tariffs were removed.
Premier Ford announced plans to fly to Washington with Canadian Finance Minister Dominic LeBlanc for talks with Commerce Secretary Howard Lutnick and other Trump officials to discuss revising the US-Mexico-Canada Agreement on trade. The incident caused fluctuations in US financial markets already jittery over Mr. Trump's broad tariff offensive but left unchanged Mr. Trump's original plans to strengthen the Section 232 national security tariffs on steel and aluminium imposed in 2018 during his first term.
A White House spokesperson described the US pressure on Canada as a "win" for the American people. The US Customs and Border Protection agency cut off imports qualifying for duty-free entry under quota arrangements well before the midnight deadline, stating that quota paperwork needed to be processed by 4:30 PM local time yesterday at US ports of entry, or the full tariffs would be charged. The move was welcomed by US steel producers as restoring Mr. Trump's original 2018 metals tariffs that had been weakened by numerous country exclusions, quotas, and product-specific exclusions.
Steel Manufacturers Association President Philip Bell praised the revised tariff, stating that it would ensure that American steelmakers can continue to create new high-paying jobs and make greater investments without being undercut by unfair trade practices. The countries most affected by the tariffs are Canada, Brazil, Mexico, and South Korea, which have all enjoyed some level of exemptions or quotas.
The escalation of the US-Canada trade war occurred as Prime Minister Justin Trudeau prepared to hand over power to his successor Mark Carney, who won the leadership race of the ruling Liberals last weekend. On Monday, Mr. Carney said he could not speak with Mr. Trump until he was sworn in as prime minister. Mr. Trump reiterated on social media that he wanted Canada "to become our cherished Fifty First State."
Canadian Energy Minister Jonathan Wilkinson told Reuters that Canada could impose non-tariff measures such as restricting oil exports to the US or levying export duties on minerals if US tariffs persist.
US President Donald Trump's increased tariffs of 25% on all steel and aluminium imports have taken effect as prior exemptions, duty-free quotas, and product exclusions expired. The European Commission announced that it will end the current suspension of tariffs on US products on 1 April and will introduce a new package of countermeasures on US goods by mid-April.
The suspended tariffs apply to products ranging from boats to bourbon to motorbikes. The EU will start a two-week consultation to select other product categories. The new measures will target around €18bn in goods, aiming to ensure that the total value of the EU measures corresponds to the increased value of trade impacted by the new US tariffs. Proposed target products include industrial and agricultural items such as steel and aluminium, textiles, home appliances, plastics, poultry, beef, eggs, dairy, sugar, and vegetables.
European Commission President Ursula von der Leyen stated that the countermeasures will be introduced in two steps, starting on 1 April and fully in place by 13 April. She emphasized the EU's readiness for meaningful dialogue and entrusted Trade Commissioner Maroš Šefčovič to resume talks with the US to explore better solutions.
President Trump's actions to protect US steel and aluminium producers restore effective global tariffs of 25% on all imports of the metals and extend the duties to hundreds of downstream products made from the metals, from nuts and bolts to bulldozer blades and cans. The run-up to the tariff deadline included drama as Mr. Trump threatened Canada with doubling the duty to 50% on its steel and aluminium exports to the US. However, Mr. Trump backed off those plans after Ontario Premier Doug Ford agreed to suspend his province's decision to impose a 25% surcharge on electricity exports to Minnesota, Michigan, and New York until earlier US tariffs were removed.
Premier Ford announced plans to fly to Washington with Canadian Finance Minister Dominic LeBlanc for talks with Commerce Secretary Howard Lutnick and other Trump officials to discuss revising the US-Mexico-Canada Agreement on trade. The incident caused fluctuations in US financial markets already jittery over Mr. Trump's broad tariff offensive but left unchanged Mr. Trump's original plans to strengthen the Section 232 national security tariffs on steel and aluminium imposed in 2018 during his first term.
A White House spokesperson described the US pressure on Canada as a "win" for the American people. The US Customs and Border Protection agency cut off imports qualifying for duty-free entry under quota arrangements well before the midnight deadline, stating that quota paperwork needed to be processed by 4:30 PM local time yesterday at US ports of entry, or the full tariffs would be charged. The move was welcomed by US steel producers as restoring Mr. Trump's original 2018 metals tariffs that had been weakened by numerous country exclusions, quotas, and product-specific exclusions.
Steel Manufacturers Association President Philip Bell praised the revised tariff, stating that it would ensure that American steelmakers can continue to create new high-paying jobs and make greater investments without being undercut by unfair trade practices. The countries most affected by the tariffs are Canada, Brazil, Mexico, and South Korea, which have all enjoyed some level of exemptions or quotas.
The escalation of the US-Canada trade war occurred as Prime Minister Justin Trudeau prepared to hand over power to his successor Mark Carney, who won the leadership race of the ruling Liberals last weekend. On Monday, Mr. Carney said he could not speak with Mr. Trump until he was sworn in as prime minister. Mr. Trump reiterated on social media that he wanted Canada "to become our cherished Fifty First State."
Canadian Energy Minister Jonathan Wilkinson told Reuters that Canada could impose non-tariff measures such as restricting oil exports to the US or levying export duties on minerals if US tariffs persist.
