EU, Canada Slap US With Retaliatory Duties

The European Union and Canada have made it clear they’re tired of President Donald Trump’s interminable tariff slinging, responding to his Tuesday announcement that he would implement universal duties on steel and aluminum products with tariffs of their own.

The trade partners on Wednesday announced plans to hike up import duties on a range of U.S.-made goods, including textiles, agricultural products, alcohol and more.

The EU response came first, with European Commission President Ursula von der Leyen announcing that the trade bloc is “matching the economic scope” of America’s 25-percent duties on steel and aluminum by rolling out tariffs worth a total of 26 billion euros ($28.33 billion).

The move will come in two phases. First, EU nations will allow the suspension of countermeasures announced during Trump’s first term to expire on April 1. These duties, which covered 8 billion euros ($8.7 billion) worth of products like Harley-Davidson motorcycles, boats and bourbon, will resume at the beginning of next month.

“Second, in response to new U.S. tariffs affecting more than 18 billion euros of EU exports, the Commission is putting forward a package of new countermeasures on U.S. exports” valued at up to 18 billion euros ($19.6 billion), which will be implemented by mid-April. These new duties include textiles, leather goods, appliances and tools, food products like poultry, beef, seafood, eggs and vegetables, along with steel and aluminum.

The EU will hold consultations with stakeholders in affected industries and trade representatives until March 26, giving them the opportunity to comment on the proposal.

“In a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs,” von der Leyen said upon the announcement.

“We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy,” she added, noting that “Jobs are at stake. Prices will go up—in Europe and in the United States.”

Meanwhile, Canada is slapping U.S. goods with $29.8 billion worth of retaliatory tariffs as a response to Trump’s across-the-board steel and aluminum duties.

America’s largest steel supplier said Wednesday that it would impose 25-percent duties on American steel, along with computers, servers, display monitors, sports equipment and other tools.

This new round of taxes only adds to the U.S. duty burden; Canada’s soon-to-be prime minister, Mark Carney, said he’d decline to roll back 25-percent retaliatory duties on U.S.-made goods like whiskey after winning the Liberal Party’s election on Sunday. This, even after Trump opted to defer his initial 25-percent duties on Canadian products until early April.

All in all, the U.S. is looking at about $60 billion in tariffs on exports to Canada, and it could face $100 billion more if Trump goes through with his “reciprocal” tariff scheme, targeting trade partners across the globe with duties equal to what the U.S. is charged. Trump has said he will make that determination on April 2 after convening with Commerce Secretary Howard Lutnick, who has been tasked with investigating and reporting on America’s trade relationships and trade deficits by that time.

According to Canadian news outlet CBC, the country’s Finance Minister, Dominic LeBlanc, and other officials like outspoken Ontario Premier Doug Ford, are slated to meet with Lutnick and U.S. Trade Representative Ambassador Jamieson Greer in Washington on Thursday. LeBlanc said the discussion will center on pushing the U.S. to drop all existing tariffs and sparing Canada from reciprocal duties, should they be imposed in April.

“We will continue to maintain our countermeasures and increase them on April 2 if we can’t get to a position where their initial measures are all lifted from Canadian businesses,” LeBlanc said, noting that the meeting may be an opportunity to “lower the temperature” of the trade tensions.

Industry worries on the rise

The Retail Industry Leaders Association (RILA) urged the USTR to take a measured approach to the proposed reciprocal duties on America’s trade partners. The group’s vice president, Blake Harden, said that while RILA supports efforts to address unfair practices that negatively impact U.S. business, countermeasures against other countries should be levied mindfully.

“Should USTR’s investigation conclude that reciprocal tariffs are the appropriate remedy to address other countries’ unfair trade practices, we urge USTR to ensure that any remedial measures do not harm U.S. companies or family budgets,” Harden wrote to Ambassador Greer.

“In short, we urge extreme caution in the use of tariffs to address unfair trade barriers to ensure that household budgets are not further squeezed by cost increases,” he added. “Instead, we urge USTR to focus on negotiating with our trading partners to reduce trade barriers to U.S. goods and services.”

Matt Priest, president and CEO of the Footwear Distributors and Retailers of America (FDRA), came out unequivocally against the use of tariffs on Wednesday.

“For years, we’ve warned that tariffs are a hidden tax on American families, raising the cost of essentials like footwear. Now, we’re seeing the consequences firsthand,” he said.

According to the Washington trade organization’s most recent industry sales survey, footwear sales plunged 26.2 percent in the week ending Feb. 22, compared to the same retail week in 2024.

“This isn’t just a routine market shift—it’s a clear sign that rising inflation and the looming threat of new tariffs directly impact consumer behavior,” Priest said.

“The administration still has an opportunity to change course before the damage worsens. If these tariffs expand, prices will rise further, businesses will struggle, and American families will continue to feel the squeeze,” he added. “With midterm elections approaching, voters will remember who took action to lower costs and who didn’t. We remain committed to working with policymakers on both sides to find solutions that remove these unnecessary burdens and provide real relief to consumers and businesses alike.”