Trade tensions rise: Trump vows more tariffs amid global retaliation
His decision to introduce import taxes on steel and aluminum has triggered strong reactions from the European Union (EU) and Canada, with both regions announcing countermeasures.
U.S. President Donald Trump has reaffirmed his commitment to imposing additional tariffs following an international backlash against his recent trade policies.
His decision to introduce import taxes on steel and aluminum has triggered strong reactions from the European Union (EU) and Canada, with both regions announcing countermeasures.
In response, Trump warned that the U.S. would implement “reciprocal” tariffs next month, emphasizing, "Whatever they charge us with, we're charging them."
His stance further intensifies an ongoing trade conflict that has unsettled financial markets and raised concerns about potential economic repercussions globally, including within the U.S.
Expanded Tariffs Spark Retaliation
On Wednesday, the U.S. government proceeded with a plan to widen tariffs on steel and aluminum, implementing a blanket 25% duty and removing exemptions previously granted to some countries. This follows an earlier directive that increased levies on Chinese imports by at least 20%.
Trump has also hinted at new tariffs on a variety of products, including copper, lumber, and automobiles. The move has drawn criticism from leaders in Canada and Europe, who denounced the tariffs as unjustified and responded with their own trade restrictions.
Canadian authorities announced a 25% tax on nearly C$30 billion ($20 billion; £16 billion) worth of U.S. goods, covering steel, computers, and sports equipment. Meanwhile, the EU plans to raise tariffs on up to €26 billion ($28 billion; £22 billion) worth of American exports, including boats, bourbon, and motorbikes, effective April 1.
EU President Ursula von der Leyen described the measures as “strong but proportionate,” emphasizing that the EU is “ready to engage in meaningful dialogue.” She warned that tariffs would lead to higher consumer prices and job losses, stating, "Nobody needs that – on both sides, neither in the European Union nor in the United States."
Global Reactions and Economic Impact
While some countries, including the UK, Australia, Mexico, and Brazil, have refrained from immediate countermeasures, UK Prime Minister Sir Keir Starmer stressed that all options remain on the table. "We are negotiating a deal that covers tariffs, but we will take a pragmatic approach," he said.
Trade experts warn that escalating tariffs could slow economic growth and increase prices for consumers. U.S. companies, including Quaker Oats and Folgers, have requested exemptions from import taxes on essential ingredients such as cocoa and fruit, which are not domestically available. Other major firms, including PepsiCo and Conagra, have echoed similar concerns, highlighting the potential strain on supply chains.
The EU estimates that the new tariffs affect approximately 5% of its total exports to the U.S., while Canada relies on the U.S. market for nearly 90% of its steel and aluminum exports. As a result, economic analysts caution that the trade dispute could disrupt industries and reduce global demand for metals not sourced within the U.S.
Market Reactions and Trump's Stance
U.S. stock markets showed mixed responses to the ongoing trade conflict. The Dow Jones Industrial Average declined by 0.2%, while the S&P 500 gained nearly 0.5%, and the Nasdaq rose by 1.2%.
Speaking alongside Irish Prime Minister Micheál Martin at the White House, Trump made it clear he has no intention of backing down. He criticized EU trade policies, referencing legal penalties imposed on Apple and restrictive regulations affecting U.S. agricultural and automotive exports.
As the trade war escalates, the global economy braces for potential disruptions, leaving businesses, consumers, and policymakers closely watching the next move in this high-stakes standoff.
