Trump's 25% Steel and Aluminum Tariffs Trigger EU and Canadian Retaliation, Threatens 200% Tariffs on EU Wines

President Donald Trump has escalated global trade tensions by imposing a 25% tariff on all steel and aluminum imports, effective immediately. This move has prompted swift retaliation from major trading partners, including the European Union and Canada, who have announced their own tariffs on U.S. goods in response. The European Union plans to impose countermeasures worth €26 billion ($28 billion) on American exports, targeting products such as meats, dairy, fruits, spices, and various non-food items. Ursula von der Leyen, President of the European Commission, stated that these measures are a response to the U.S. tariffs. The EU's actions are set to be implemented in two stages, with the first set of countermeasures, including the reinstatement of 2018 and 2020 tariffs, taking effect on April 1, and additional measures planned for April 13 following consultations with member states and stakeholders. Canada has also retaliated by imposing a 25% tariff on approximately $20 billion worth of U.S. goods, including steel, aluminum, computers, sports equipment, and tools. This follows a brief pause in a planned 25% surcharge on electricity sold to the U.S., which was in response to Trump's initial tariff increase on Canadian metals. Canadian Finance Minister Dominic LeBlanc criticized Trump's actions as unnecessary disruption to a successful trade partnership. Trump has responded to these retaliatory measures by threatening further tariffs, including a potential 200% tariff on certain EU products, such as wines and other alcoholic beverages, if the EU does not remove its tariffs on U.S. whiskey. This escalation signals a deepening of the trade war between the U.S. and its allies. EU Trade Commissioner Maroš Šefčovič has expressed willingness to negotiate, while Canadian incoming Prime Minister Mark Carney and Ontario Premier Doug Ford have emphasized the importance of resolving the issue. The EU estimates potential losses of up to 3.7 million tons of steel exports, representing 16% of its total steel exports to the U.S., with annual trade volume between the two sides at about USD 1.5 trillion, or 30% of global trade.