Canada and the European Union announced retaliatory measures on Wednesday following the implementation of new U.S. tariffs on steel and aluminum imports.
Canada will impose C$29.8 billion in countermeasures, while the European Commission confirmed plans to introduce tariffs on up to €26 billion ($28 billion) worth of U.S. goods starting next month.
Canadian officials stated that they are considering additional non-tariff responses, including restrictions on oil exports to the U.S. and duties on mineral exports. Canada supplies a significant portion of aluminum to the U.S. due to its lower production costs and hydropower resources.
The European Commission, while moving forward with counter tariffs, signaled its willingness to resume discussions with U.S. officials. Commission President Ursula von der Leyen emphasized that further trade barriers would be counterproductive in a period of economic uncertainty.
France’s Europe Minister Benjamin Haddad warned that if tensions escalate, the EU could expand its response to include digital services and intellectual property.
Despite concerns over economic consequences, some U.S. allies, including the UK and Australia, have ruled out direct retaliation. However, businesses across multiple industries, from automotive to energy, remain concerned about the impact of prolonged trade disputes on supply chains and pricing strategies.
