EU and Canada Announce Retaliatory Tariffs on U.S. Goods

EU Imposes Countermeasures on $28.3 Billion Worth of U.S. Goods

On March 12, the European Commission announced retaliatory tariffs on €26 billion ($28.3 billion) worth of U.S. goods, citing unjustified U.S. tariffs on EU steel and aluminum imports.

European Commission President Ursula von der Leyen expressed deep regret over the 25% tariffs imposed by the U.S., stating that these measures threaten jobs, drive up prices, disrupt supply chains, and create economic uncertainty for both the EU and the U.S.

In 2018 and 2020, the EU had previously introduced countermeasures in response to U.S. steel and aluminum tariffs. To facilitate long-term tariff negotiations, the EU had suspended these measures until March 31, 2025.

According to the Commission's statement, the EU's countermeasures will be implemented in two phases:

1. Effective April 1, the EU will reinstate previous retaliatory tariffs to offset the €8 billion ($8.7 billion) in economic damage caused by U.S. steel and aluminum tariffs.

2. By mid-April, the EU will introduce a broader package of retaliatory tariffs on U.S. goods worth over €18 billion ($19.6 billion), following consultations with member states and stakeholders.

European Commissioner for Trade and Economic Security Maroš Šefčovič condemned the U.S. tariffs as "completely misguided," stating that while the EU remains committed to reaching an agreement, it will not ignore unfair tariffs or hesitate to protect its legitimate economic interests.

Canada to Levy 25% Tariff on $21 Billion Worth of U.S. Goods

Also on March 12, the Canadian government announced a 25% retaliatory tariff on C$29.8 billion ($21 billion) worth of U.S. goods, responding to the 25% tariffs imposed by the U.S. on all steel and aluminum imports.

In a joint press conference, Finance Minister Dominic LeBlanc, Foreign Minister Mélanie Joly, and Industry Minister François-Philippe Champagne outlined Canada's response, which includes tariffs on U.S. steel and aluminum, computers, and sports equipment.

The U.S. tariffs on Canadian and Mexican goods took effect on March 4. In retaliation, Canada has already imposed a 25% tariff on $30 billion worth of U.S. goods, covering poultry, meat, dairy, wheat, and other food products.