The ongoing global trade tensions have reached a new level as Canada and the European Union impose countermeasures in response to fresh U.S. tariffs on steel and aluminum imports.
Effective immediately, the U.S. government has enforced a 25% tariff on all steel and aluminum imports, impacting key global trade partners. The move, aimed at addressing industrial overcapacity and national security concerns, has sparked swift reactions from Canada and the EU, both of whom announced retaliatory tariffs targeting American goods worth billions of dollars.
In response, the European Union has imposed countertariffs on $28 billion worth of U.S. goods, citing disruptions to global supply chains and economic instability. European Commission President Ursula von der Leyen condemned the U.S. tariffs, emphasizing the negative impact on businesses and consumers on both sides of the Atlantic.
“These tariffs disrupt supply chains, create economic uncertainty, and put jobs at risk. The European Commission will take necessary measures to protect businesses and consumers,” von der Leyen stated.
The EU also announced the expiration of previously suspended countermeasures from 2018 and 2020, effective April 1. Additional tariffs targeting key U.S. exports will take effect by mid-April, intensifying the trade dispute.
Canada has also responded forcefully, unveiling tariffs on $21 billion worth of U.S. goods. The measures, aimed at offsetting the economic impact of the U.S. duties, were announced as Canadian officials criticized the U.S. administration for jeopardizing a historically strong trade relationship.
“The U.S. is introducing unnecessary disruption into a highly successful trading partnership, raising costs for both Canadian and American households,” stated François-Philippe Champagne, Canada’s Minister of Innovation, Science, and Industry.
Ontario also made headlines by dropping a proposed 25% surcharge on electricity exports to the U.S. after reports emerged of a potential increase in U.S. tariffs from 25% to 50% on Canadian steel and aluminum. However, later updates suggested the U.S. might reconsider this hike.
The escalating trade tensions extend beyond steel and aluminum. The EU and Canada are imposing additional duties on other U.S. exports, including beef, motorcycles, and whiskey, increasing pressure on American industries.
Meanwhile, China remains entangled in its own trade dispute with the U.S., facing new tariffs on exports valued at $19.6 billion. In response, China has placed duties of up to 15% on U.S. agricultural products, including beef, chicken, and pork.
Additionally, while the U.S. has delayed across-the-board tariffs on Canadian and Mexican goods under the United States-Mexico-Canada Agreement (USMCA) until April 2, further tariff increases on Canadian lumber and dairy remain under consideration.
As trade disputes escalate, businesses across multiple sectors face rising costs, supply chain disruptions, and market uncertainty. The ripple effects of these tariffs are expected to impact global logistics, manufacturing, and consumer prices in the months ahead.
Source – https://www.freightwaves.com/news/canada-eu-hits-back-at-us-with-tariffs-as-trade-war-escalates