President Donald Trump’s new tariffs on U.S. steel and aluminum imports took effect Wednesday, intensifying global trade tensions.
The move restores 25% tariffs on all steel and aluminum imports and extends duties to downstream products like nuts, bolts, bulldozer blades, and soda cans.
The European Commission announced retaliatory tariffs on $28 billion worth of U.S. goods starting next month.
Canada, Britain, and Australia criticized the tariffs, with Canada considering countermeasures and Britain signaling all options are on the table.
Australia condemned the move but ruled out retaliatory duties.
Canada, Brazil, Mexico, and South Korea — major U.S. metal suppliers — are among the hardest hit.
Trump threatened to double tariffs on Canadian metals but backed down after Ontario agreed to delay electricity surcharges on U.S. exports.
Canadian leaders plan to meet with U.S. officials to discuss revising the U.S.-Mexico-Canada Agreement (USMCA).
U.S. steel producers welcomed the tariffs, arguing they close loopholes and strengthen the domestic industry.
The tariffs arrive as Canada prepares for leadership change, with Prime Minister Justin Trudeau handing over power to Mark Carney.
Canada warned it may restrict oil exports or impose mineral duties if U.S. tariffs persist, despite most U.S.-Canada trade remaining duty-free under the USMCA.
China, the second-largest aluminum supplier to the U.S., faces additional tariffs amid ongoing disputes over subsidies and fentanyl trafficking.
Economists warn that Trump’s aggressive tariff strategy is shaking business confidence and could push the U.S. toward recession.
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