EU, Canada hit back at US tariffs with over $20 bn countermoves

The European Union on Wednesday announced retaliatory trade action with new duties on US industrial and farm products, responding within hours to the Trump administration’s increase in tariffs on all steel and aluminum imports to 25%.

The EU measures, likely to come into effect on April 1, will cover goods from the United States worth some 26 billion euros ($28 billion), and not just steel and aluminium products, but also textiles, home appliances and agricultural goods. Motorcycles, bourbon, peanut butter and jeans will be hit, as they were during President Donald Trump’s first term.

The EU duties aim for pressure points in the US while minimising additional damage to Europe.

Canada too will announce $20.7 billion in retaliatory tariffs in response to the 25% US tariffs tomorrow, a senior Canadian government official said.

Britain, which isn’t part of the EU, meanwhile said it won’t impose retaliatory measures of its own on the US. British Business Secretary Jonathan Reynolds said on Wednesday he would “continue to engage closely and productively with the US to press the case for UK business interests”. However, he did not rule out future tariffs on US imports.