Canada, Europe hit back after US metals tariffs kick in

The European Union and Canada announced retaliatory tariffs on Wednesday after the Trump administration’s metals duties took effect, escalating a trade war with major U.S. trading partners.

At midnight, the U.S. imposed 25% tariffs on all steel and aluminum imports from every trading partner, without exceptions or exemptions, the White House confirmed.

The move rattled global markets, with the Dow Jones Industrial Average falling 330 points (0.8%), while the S&P 500 dropped 0.25%. The tech-heavy Nasdaq, however, ticked up 0.25%.

In response, the European Union will impose countermeasures on $28 billion worth of U.S. goods, European Commission President Ursula von der Leyen stated. “Tariffs are taxes. They are bad for business, and even worse for consumers,” she warned.

Canada followed suit, announcing tariffs on $20.7 billion worth of U.S. goods, with implementation set for Thursday. Canadian Minister of Intergovernmental Affairs Dominic LeBlanc emphasized that the decision aims to protect Canadian jobs and industries.

The EU’s countermeasures will unfold in two phases: reinstating suspended tariffs from 2018 and 2020 on April 1, followed by new tariffs targeting $18 billion worth of U.S. goods, including steel, aluminum, home appliances, and agricultural products by mid-April.

EU Trade Commissioner Maros Sefcovic stated that while European officials seek a “win-win” solution, the bloc will not leave the U.S. tariffs unanswered.

“We should be making this great relationship stronger, not weaker,” Sefcovic added.

Credit: ABC News