Canada and the EU swiftly retaliate against Trump’s steel and aluminum tariffs

Major trade partners swiftly hit back at President Donald Trump’s increased tariffs on aluminum and steel imports, imposing stiff new taxes on US products from textiles and water heaters to beef and bourbon.

Canada, the largest supplier of steel and aluminum to the US, says it will place 25% reciprocal tariffs on steel products and also raise taxes on a host of items: tools, computers and servers, display monitors, sports equipment and cast-iron products.

Across the Atlantic, the European Union will raise tariffs on American beef, poultry, bourbon, motorcycles, peanut butter and jeans.

Combined, the new tariffs will cost companies billions of dollars, and further escalate the uncertainty in two of the world’s major trade partnerships. Companies will either take the losses and earn fewer profits, or, more likely, pass costs along to consumers in the form of higher prices.

Prices will go up, in Europe and the United States, and jobs are at stake, says European Commission President Ursula von der Leyen.

“We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers,” von der Leyen says.

The EU duties aim for pressure points in the US while minimizing additional damage to Europe. EU officials have made clear that the tariffs — taxes on imports — are aimed at products made in Republican-held states, such as beef and poultry from Kansas and Nebraska and wood products from Alabama and Georgia. The tariffs will also hit blue states such as Illinois, the No. 1 US producer of soybeans, which are also on the list.

Spirits producers have become collateral damage in the dispute over steel and aluminum. The EU move “is deeply disappointing and will severely undercut the successful efforts to rebuild US spirits exports in EU countries,” said Chris Swonger, head of the Distilled Spirits Council. The EU is a major destination for US whiskey, with exports surging 60% in the past three years after an earlier set of tariffs was suspended.