The Trump administration formally imposed 25% tariffs on imports of EU steel and aluminum today. Within hours of those tariffs going into effect, the EU responded by announcing the intention of its member-states to impose counter-tariffs on roughly $28 billion worth of U.S. goods, including steel and aluminum products, textiles, home appliances, agricultural goods, motorcycles, bourbon, peanut butter, and jeans, among other items. The full list of items will be the subject of negotiation among the EU member-states over the next two weeks with the intent of the tariffs going into effect on April 1, 2025.
Separately, one day after announcing his intention to increase tariffs on Canadian steel and aluminum imports to 50%, President Trump walked back that threat after Ontario announced that it would not move forward with announced plans to impose tariffs on electricity that Ontario supplies to three U.S. states.
The push and pull of threatened tariffs and counter-tariffs will undoubtedly continue as the Trump Administration seeks to bring sweeping changes to U.S. trade policy.
