As President Donald Trump’s 25% tariff on imported steel and aluminium took effect Wednesday morning, the European Union and Canada announced tens of billions of dollars worth of retaliatory tariffs against U.S. goods.
US President Donald Trump speaks to reporters as he meets with Irish Prime Minister Micheal Martin in the Oval Office of the White House in Washington, DC, on March 12, 2025.
AFP via Getty Images
Key Takeaways
- March 12 Canada—which has been working through the start of a trade war with the U.S. for weeks as Trump threatened, then largely paused, sweeping tariffs against it and Mexico—announced trade duties on about $21 billion worth of American goods in response to Trump’s steel and aluminium tariffs.
- Canada’s finance minister, Dominic LeBlanc, said the tariffs will go into effect Thursday and will include levies on about $8.8 billion of steel products, $2.1 billion of aluminium products and $9.9 billion of other U.S. goods—totaling about $20.7 billion in U.S. dollars.
- March 11The European Commission—the executive body of the European Union—announced late Tuesday it was implementing “swift and proportionate countermeasures on U.S.” imports in response to Trump’s steel and aluminum tariffs, which they called “unjustified.”
- The commission said it will let current suspensions of existing countermeasures against the U.S. to lapse on April 1, and by mid-April other countermeasures—applying to goods exports worth up to $28 billion—will be in place, targeting things like steel, aluminum, textiles and agricultural goods largely grown in red, southern states, like Louisiana soybeans.
What Other Retaliatory Tariffs Is The US Facing?
The steel and aluminium tariffs are not the only ones Trump has announced since taking office, and other countries have warned of retaliatory tariffs against Trump’s other actions, as well.
- On Feb. 10, Trump enacted a 10% tariff on products from China, and China reacted by implementing 15% tariffs on U.S. chicken, wheat, corn and cotton and 10% tariffs on other agricultural products, The New York Times reported.
- Earlier this month, Canada responded to Trump’s 25% tariffs on Canadian imports with 25% retaliatory tariffs on $20.8 billion in U.S. goods—covering hundreds of items, including foods like pasta and cheese and consumer products like stoves and shoes—which Canada said will remain in place until the U.S. backs down (though Trump has temporarily exempted goods covered by a 2018 U.S.-Canada.Mexico trade deal).
- A number of provinces in Canada also announced their own measures like removing U.S. liquor from shelves, including Alberta, Ontario, British Columbia and Manitoba, while Ontario imposed—and then shelved—a 25% tax on U.S.-bound electricity.
- Mexico has also vowed to impose retaliatory tariffs over Trump’s 25% tax on Mexican imports, though goods covered by the 2018 trade deal are exempted for now.
What Tariffs Went Into Effect Wednesday?
Trump’s 25% tariff on all steel and aluminium imports to the U.S. took effect Wednesday. He announced the tariff in early February, saying it was “a big deal” and that “it’s time for our great industries to come back to America.” The tariffs have been popular among domestic producers, with the American Iron and Steel Institute saying in a statement Wednesday it supports Trump’s “actions to restore the integrity of the tariffs on steel and implement a robust and reinvigorated program to address unfair trade practices.” The tariffs upset Canada—where the U.S. gets a large share of its imported aluminium and steel products—though, and other importers to the U.S.
Does Canada Face 50% Steel And Aluminium Tariffs?
No, Trump walked back his threat to double steel and aluminium tariffs for Canada after Ontario Premier Doug Ford said the province would suspend its 25% levy on electricity from Ontario being imported into New York, Michigan and Minnesota. Before Ford met with Commerce Secretary Howard Lutnick and agreed to stop the 25% surcharge, Trump said on Truth Social he instructed Lutnick to double the tariff on Canada and again pushed for them to become the 51st state. Canada still faces the 25% universal steel and aluminium tariffs?
What To Watch For
While answering questions next to the Irish prime minister, Trump said Wednesday he will “of course” respond to the retaliatory tariffs implemented by the EU and accused Ireland of being one of the countries “taking advantage” of the U.S.
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