Canada and EU Impose More Tariffs on U.S.

The two sides must de-escalate and find a negotiated outcome urgently.

The American Chamber of Commerce in response to the European Union (EU) and the U.S. imposing tariffs on each side.

What Happened:

• President Donald Trump increased tariffs on all steel and aluminum imports by 25%, which began Wednesday.
• In response, starting Thursday, Canada will impose 25% reciprocal tariffs on steel products. Canada will also impose tariffs on a number of goods including “tools, computers and servers, display monitors, sports equipment and cast-iron products.” (Department of Finance Canada)
• The EU will raise tariffs on American beef, poultry, motorcycles, bourbon, peanut butter and jeans. (AP) These tariffs start April 1 and will be fully complete April 13. (EU)
• On Thursday, President Trump posted to Truth Social saying he would impose 200% tariffs on European alcohol.

Why It Matters: Additional tariffs will either force companies in a variety of industries to take losses or raise prices on consumers in all countries involved. “It is not easy for American companies that use steel and aluminum in production to find it elsewhere, so we’ll see increases in prices. Makers of vehicles will face higher costs, which will be passed on to consumers,” said Layna Mosley, politics and international affairs professor at Princeton School of Public and International Affairs.

• What President Trump is saying: The administration says it is focused on implementing tariffs, renegotiating trade agreements and bringing industries back to the United States: “The United States of America is going to take back a lot of what was stolen from it by other countries and, frankly, by incompetent U.S. leadership. We’re going to take back our wealth, and we’re going to take back a lot of the companies that left.”
• What Canada is saying: Mary Ng, Canada’s minister of export promotion, international trade and economic development, said in a statement Wednesday: “Instead of imposing unwarranted trade barriers, the U.S. should work with Canada as a trusted trade partner. Canada will always defend its interests and stand up for Canadian jobs, industries and workers. We will continue to pursue all available avenues to challenge these unfair and detrimental trade actions.”
• What the EU is saying: Ursula von der Leyen, president of the European Commission (the European Union’s leadership body), said in a statement Wednesday: “We deeply regret the US tariffs imposed on Europe. Tariffs are taxes. They are bad for business, and even worse for consumers. Today Europe takes strong but proportionate countermeasures. We remain ready to engage in dialogue”

Read More: Canada and the EU swiftly retaliate against Trump’s steel and aluminum tariffs (AP)

Trump threatens 200% tariff on European wine and Champagne (CBS News)