Canada to impose C$29.8b retaliatory tariffs on US: Reuters
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More news: Canada is set to announce C$29.8 billion ($32.9 billion) in retaliatory tariffs on the US, in response to US President Donald Trump's 25% tariffs on steel and aluminium which took effect earlier on Wednesday, according to a Canadian official cited by Reuters.
The news follows Trump's decision to back down from a threat to impose an additional 25% in tariffs on the Canadian products on Tuesday, after Ontario Premier Doug Ford and US Commerce Secretary Howard Lutnick agreed to suspend a planned 25% surcharge on electricity from Ontario sent to US customers that Ford had warned he would impose.
Canada is the biggest foreign supplier of steel and aluminium to the US.
Incoming Canadian Prime Minister, Mark Carney, said he could not speak with Trump until he is sworn in as prime minister.
Canada's retaliatory tariffs follow the EU's plan to impose “swift and proportionate” countermeasures on €26 billion worth of US goods in response to the US tariffs.
EU retaliates to US tariffs with €26b ‘countermeasures’
The news: The EU will impose “swift and proportionate” countermeasures on €26 billion ($45 billion) worth of US goods in response to the Trump administration’s steel and aluminium import tariffs, the European Commission announced on Wednesday.
The numbers: The announcement came just hours after US-imposed 25% tariffs on steel and aluminium exports took effect. President of the European Commission, Ursula von der Leyen explained that as the US are applying tariffs worth USD28 billion, the bloc is responding with “proportionate” countermeasures worth €26 billion.
The context: The response marks a steep escalation in the ongoing trade war that has shaken financial markets and continues to threaten the stability of the global economy.
The EU countermeasure is comprised of two parts. The bloc had increased tariffs on a number of goods in retaliation to US measures enacted during Trump’s first term, but suspended the measures under the Biden administration. First, the EU will allow the suspension to lapse on 1 April, allowing higher tariffs to take effect on around €8 billion of imported US products. Second, the bloc with impose a new package of tariffs on €18 billion worth of additional US products.
The EU said it will immediately begin consultations with member states with a plan to adopt the measures in April.
What they said: Von der Leyen said: “We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. In Europe and in the United States. The European Union must act to protect consumers and business. The countermeasures we take today are strong but proportionate.”
The sources: European Commission memo, European Commission statement
