Donald Trump announced intentions to impose further tariffs on goods from the European Union, intensifying global trade tensions. This follows the implementation of a 25 per cent duty on all US steel and aluminium imports, leading to strained relations with key trading partners. Trump has threatened additional tariffs if the EU proceeds with its planned countermeasures next month, asserting, "Whatever they charge us, we're charging them." This tariff strategy has raised concerns.
Canada, as the biggest foreign supplier of steel and aluminium to the US, has also responded by imposing retaliatory tariffs on American goods, including metals and electronics, totalling $20 billion. Canada's Finance Minister, Dominic LeBlanc, emphasised, "We will not stand idly by while our iconic steel and aluminium industries are being unfairly targeted."
To counteract economic disruptions caused by these trade tensions, Canada's central bank has lowered interest rates. Meanwhile, US Commerce Secretary Howard Lutnick announced further trade protections targeting copper imports.
The EU's response could impact up to $28 billion worth of US goods, targeting items like dental floss and bourbon. Despite escalating tensions, EU Commission President Ursula von der Leyen stressed, "It is not in our common interest to burden our economies with such tariffs."
Trump remains firm on imposing reciprocal tariffs on countries like India, China, and South Korea, claiming they impose much higher tariffs on American products. Trump criticised, "It is very unfair," highlighting the disparity in tariff rates between these nations and the US.
Meanwhile, UN Secretary General Antonio Guterres warned about the broader implications of trade conflicts, stating, "all will lose" in such a scenario. His remarks underscore the tensions affecting relations with other nations, including Japan and Australia.
As Canada's Prime Minister Justin Trudeau prepares to pass leadership, his successor, Mark Carney, expressed willingness to negotiate with Trump under terms that respect Canadian sovereignty: "I'm ready to sit down with President Trump at the appropriate time, under a position where there's respect for Canadian sovereignty."