By enacting steel and aluminum tariffs, U.S. President Donald Trump heightened trade tensions, prompting Canada and the European Union to retaliatory action. Trump stressed that the United States would replicate any trade restrictions imposed by other countries and pledged to implement more tariffs in reaction to countermeasures.
His government increased taxes on Chinese commodities and imposed a 25% steel import tariff, ending earlier exemptions. Fearing economic slowdowns and rising consumer expenses, global markets responded with a jolt.
Canada announced immediate retaliatory tariffs, imposing a 25% duty on $20 billion of U.S. imports, including steel, electronics, and sports equipment. Prime Minister-designate Mark Carney expressed willingness to renegotiate trade deals but insisted on preserving Canadian sovereignty in economic matters.
The European Union followed suit, imposing new tariffs on $28 billion worth of U.S. exports like motorcycles, bourbon, and boats. European Commission President Ursula von der Leyen described the EU’s response as measured yet firm, emphasizing the negative consequences of escalating tariffs. She warned that rising prices and economic instability would harm businesses and consumers on both sides of the Atlantic.
British Prime Minister Keir Starmer acknowledged concerns but insisted that the UK approach the situation pragmatically while keeping all options open. Central American food producers, including Quaker Oats and Folgers, petitioned Trump to exempt products like cocoa and fruit from new tariffs.
PepsiCo, Conagra, and J.M. Smucker joined industry groups urging exemptions for ingredients unavailable domestically. Analysts predict higher import taxes will increase production costs and raise consumer prices.
Trump defended his trade strategy, citing unfair EU policies that disadvantage American goods like cars and agricultural products. He reiterated his commitment to using tariffs as leverage, stating that the U.S. would ultimately prevail in economic battles. Trump´s tariffs now threaten global supply chains, prompting concerns about long-term trade stability.
