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Taoiseach Micheal Martin visits President Donald Trump at the White House on March 12, 2025.
Trade war update: Canada and EU hit back at Trump
The tits and tats are getting bigger as the US’s various trade wars escalate.
Canada hits back. Ottawa on Tuesday announced a fresh 25% percent tariff on $20 billion worth of annual imports of US metals, computer monitors and servers, sports equipment, and other items. The move came just hours after Trump imposed a 25% duty on all US steel and aluminum imports.
Canada is the largest foreign steel supplier to the US, sending 99% of its exports to Uncle Sam. The White House has said its tariffs on Canada – and those set to come into effect on Mexico in April – are meant to force the two US neighbors to beef up border security.
The EU cocks the hammer too. In April, the Union will raise tariffs on nearly $30 billion in annual imports of US products, including beef, poultry, bourbon, soybeans, motorcycles, peanut butter, and jeans. That seemingly random list aims primarily at industries in GOP-controlled states.
The EU, which made the move in response to the Trump metals tariffs, said it was “open to compromise.” The $1.5 trillion US-EU trade relationship is the world’s largest.
What does Trump want from Europe? The US runs trade deficits with Europe, which Trump has called an “atrocity.” But European officials say they’ve struggled to learn more.
A White House memo in February highlighted EU restrictions on American shellfish and cars. And on Wednesday, Trump blasted Ireland’s low corporate tax rates, which have lured US firms, particularly in pharma, to register themselves in the country.
“I have great respect for Ireland,” Trump said at an Oval Office meeting Wednesday with Irish Prime Minister Micheál Martin, “but the United States shouldn’t have let it happen.”Endorsed by steelworkers onstage, then-Republican presidential nominee Donald Trump puts on a hard hat during his Make America Great Again Rally in Latrobe, Pennsylvania, on Oct. 19, 2024.
Trump tariffs steel and aluminum at 25%
US President Donald Trump signed an executive order Monday imposing 25% tariffs on all steel and aluminum imports to the US. This raises the tariff rate on aluminum to 25% from the previous 10% that Trump imposed in 2018, and it reinstates a 25% tariff on “millions of tons” of steel and aluminum imports previously exempted or excluded.
“Today I’m simplifying our tariffs on steel and aluminum,” Trump stated. “It’s 25% without exceptions or exemptions.”
Cue the negotiations. On Monday, Trump reportedly took a call from Australian Prime Minister Anthony Albanese, who is seeking a carve-out for Australian steel exports. Albanese described their conversation as “constructive and warm” but did not want to “speak on [Trump’s] behalf.”
The EU said it would respond with “firm and proportionate countermeasures.” Prime Minister Justin Trudeausaid Tuesday that the tariffs were “entirely unjustified” and “unacceptable,” noting that Canada – the US’ biggest source of aluminum and one of its top sources of steel – would respond if necessary but will try to work with the US administration to avoid them. Mexican President Claudia Sheinbaum, who has also threatened countermeasures in recent weeks, said her country would keep a “cool head.”
The new US tariffs are set to take effect on March 4, and Trump added that he will also consider additional tariffs on cars, pharmaceuticals, and computer chips.
Why now? Trump’s announcement came two days after the visit of Japanese Prime Minister Shigeru Ishiba, who announced that Japan would increase its US investment to $1 trillion, including a commitment from Nippon Steel to “invest heavily” in US Steel, after a $15 billion buyout was nixed last year by the Biden administration. The deal is another reflection of Trump’s plan to strengthen domestic steel production and make imports less attractive – or even necessary.
Was there a connection? “It’s certainly possible,” says Eurasia Group’s Japan Director David Boling. “But we knew steel tariffs were coming — it was only a matter of time. While Trump is proud to be Tariff Man, he could also be called the Man of Steel. Steel is his favorite industry.” We’re waiting to see whether Ishiba picks up the phone like Albanese and leverages Nippon’s investment to lift the levies.President Donald Trump speaks to reporters aboard Air Force One en route to New Orleans to attend the Super Bowl, on Feb. 9, 2025.
Hard Numbers: Trump to unveil steel tariffs, Paris AI summit begins, Ecuador faces runoff election, Maoist rebels killed, Baltics energized by Europe, Eagles soar over Chiefs
25: Donald Trump says he plans to announce a 25% tariff on steel and aluminum imports from all countries, including Mexico and Canada. It’s unclear when the tariffs will take effect, but the US president said Sunday that he would make a formal announcement on Monday.
80: Government and industry leaders from at least 80 countries are convening in Paris on Monday and Tuesday as the AI Action Summit gets underway inside the historic Grand Palais. This year’s summit, the third following similar gatherings in Bletchley Park (UK) and Seoul, Korea, is co-hosted by France’s President Emmanuel Macron and India’s Prime Minister Narendra Modi,and it will feature an open dialogue about AI regulation and innovation at a critical time for both geopolitics and the technology itself. US Vice President JD Vance is attending as he begins his first official trip abroad. GZERO’s Tony Maciulis will be reporting from the summit and bringing us an interview with Paris Peace Forum Director General Justin Vaïsse on Tuesday.
1: Ecuador’s President Daniel Noboa was expected to prevail in Sunday’s election and avoid a runoff, but the race against his leftist opponent, Luisa Gonzalez, proved extremely close. Up less than 1% at the time of writing, and with nearly 80% of the ballot boxes counted, Noboa had 44.5% of the vote compared to Gonzalez's 44.1%. If neither candidate secures an outright majority, a runoff will be held on April 13.
31: Security forces battled Maoist rebels in the Bijapur district of Chattisgarh in central India on Sunday, killing 31 insurgents. The left-wing communists, part of the Naxalite movement, have been fighting with India’s government since 1967. Two Indian commandos were also killed in the clash.
3: The three Baltic countries have bid farewell to Russia’s power grid. Estonia, Latvia, and Lithuania completed their switch from the Russian to the European grid on Sunday. European Commission President Ursula von der Leyen called the move — amid heightened security owing to suspected sabotage of underwater cables and pipelines in the Baltic Sea — a new era of freedom for the region.
40-22: The Kansas City Chiefs were hoping for a historic hat-trick Super Bowl win last night in New Orleans, but it wasn’t to be. The Philadelphia Eagles dominated from the start, closing out the first half at 24-0, and finishing the game 40-22, with their quarterback, Jalen Hurts, winning MVP.