On Wednesday, US President Donald Trump warned of intensifying a global trade war by imposing additional tariffs on European Union products, as significant trading partners indicated they would respond to trade restrictions.
Only hours after Trump’s 25 percent tariffs on all US steel and aluminum imports were implemented, the US President announced he would enforce further penalties if the EU persists with its plan for counter tariffs on certain US products next month.
“Whatever they charge us, we’re charging them,” Trump said at the White House.
Trump’s decision followed Canada’s implementation of an equivalent tariff on American products in reaction to Trump’s wider tariffs. Significantly, Canada is the largest overseas provider of steel and aluminum to the United States.
At the same time, UN Secretary General Antonio Guterres has cautioned about this tariff conflict and stated that “everyone will suffer” when nations enter into such circumstances.
“I think we live in a global economy. Everything is interlinked. And obviously, one of the great advantages of having a situation of free trade is to create the conditions for all countries to benefit. When we enter into a trade war, I believe all will lose,” Guterres said.
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Canada steadfast on retaliatory tariffs
“We will not stand idly by while our iconic steel and aluminum industries are being unfairly targeted,” Canada’s Finance Minister Dominic LeBlanc was quoted by Reuters.
At the same time, the 27 nations of the European Union face less risk, with only a “minor portion” of affected goods being sent to the United States, according to Reuters referencing Germany’s Kiel Institute.
EU Retaliates Against Trump’s Tariffs
The European Commission has declared that it will implement “quick and appropriate countermeasures” on US imports into the European Union in reaction to the tariffs that the US has placed on EU steel and aluminium imports.
The European Commission voiced disappointment regarding the US choice to implement tariffs, labeling them as “unwarranted, disruptive to transatlantic trade, and detrimental to businesses and consumers, frequently leading to increased prices.”
The European Union is set to increase tariffs on American beef, poultry, bourbon, motorcycles, peanut butter, and jeans as a reaction to President Donald Trump’s higher tariffs on aluminum and steel imports.
