President Trump threatens to escalate the global trade war with further tariffs on EU goods, prompting retaliatory measures from Canada

On Wednesday, U.S. President Donald Trump threatened to intensify the global trade war by imposing additional tariffs on European Union goods, following the implementation of 25% duties on all U.S.

steel and aluminum imports. Trump’s comments came shortly after the tariffs took effect, as the EU signaled plans to enact countermeasures on select U.S. goods next month.

“Whatever they charge us, we’re charging them,” Trump stated, reaffirming his approach to trade protectionism.

This aggressive stance has raised concerns among investors, businesses, and consumers, contributing to fears of a potential recession.

The heightened tensions have also strained relations with Canada, a key ally and significant trading partner, after Trump threatened to annex the neighboring country.

In response to the tariffs, Canada, the U.S.’s largest foreign supplier of steel and aluminum, announced retaliatory measures. The country will impose 25% tariffs on U.S. steel, aluminum, computers, sports equipment, and other goods worth $20 billion in total. These tariffs add to the already imposed duties by Canada on U.S. products in retaliation for Trump’s broader trade actions.

Canada’s Finance Minister, Dominic LeBlanc, voiced the nation’s defiance, stating, “We will not stand idly by while our iconic steel and aluminum industries are being unfairly targeted.”

In anticipation of economic disruption, Canada’s central bank also took preemptive action by cutting interest rates.

Trump’s move to bolster protections for U.S. steel and aluminum producers aims to reintroduce effective tariffs of 25% on imports, extending the duties to various downstream products, from nuts and bolts to bulldozer blades and soda cans.

U.S. Commerce Secretary Howard Lutnick also indicated that copper tariffs would be added to the list of protected industries.

As global trade tensions continue to escalate, the world watches closely to see how further retaliations will unfold.