Trade war escalates: EU and Canada impose retaliatory tariffs on the US
The EU and Canada have responded strongly to the US's 25% tariffs on steel and aluminum, imposing countermeasures worth $29.8 billion and €26 billion, respectively.
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Canada has announced the introduction of retaliatory tariffs on US imports worth $29.8 billion after the US imposed 25% tariffs on Canadian steel and aluminum.
This decision was announced by Finance Minister Dominic LeBlanc, Foreign Affairs Minister Mélanie Joly, and Innovation Minister François-Philippe Champagne.
Starting March 13, 2025, Canadian authorities will implement equivalent 25% tariffs on US goods, including steel and aluminum worth $15.6 billion, as well as additional goods worth $14.2 billion.
The list includes tools, computer equipment, sports gear, and cast iron products.
Previously, the US imposed similar tariffs on $30 billion worth of Canadian exports, citing the IEEPA law. Canada considers these measures unjustified and in violation of trade agreements under CUSMA and the WTO.
In response, Ottawa has initiated official consultations with Washington.
Canadian officials stated that the list of sanctioned goods could be expanded if the White House does not lift the restrictive measures. The possibility of imposing tariffs on products with high steel and aluminum content is also being considered.
To support local businesses, the government has launched the Trade Impact Program, offering preferential loans and simplified access to insurance for affected companies.
Employees of impacted enterprises will be able to take advantage of the expanded EI Work-Sharing program.
Minister of International Trade Mary Ng stated that Canada will continue to defend its jobs and industries and will challenge US trade barriers.
Additionally, today the European Commission announced the introduction of tariffs on US goods worth €26 billion in response to the new 25% US tariffs on European steel and aluminum.
Starting April 1, the EU will reinstate previously suspended countermeasures from 2018 and 2020, affecting US goods worth €8 billion.
Subsequently, after consultations with EU member states and stakeholders, Brussels will introduce a new package of tariffs on US exports, covering goods valued at €18 billion. The full set of measures will come into effect by April 13.
European Commission President Ursula von der Leyen called the US tariffs destabilizing for markets and emphasized that the EU is open to dialogue but will not leave economic pressure unanswered.
She tasked Trade Commissioner Maroš Šefčovič with resuming negotiations with the US to seek a mutually acceptable solution.
The EU considers the new US tariffs a violation of international trade norms. As a result, consultations with all stakeholders will be held from March 12 to March 26, after which the European Commission will make a final decision on the implementation of tariffs.
EU-US trade relations are facing a new crisis following Washington’s announcement of 25% tariffs on European steel, aluminum, and their derivatives.
According to the European Commission, these US restrictions could lead to price increases, job losses, and disruptions in supply chains. Despite the firm response, Brussels remains open to negotiations if Washington shows a willingness to compromise.