Both the European Union and Canada have announced reciprocal tariffs on the US, after tariffs on steel and aluminium imports to the US came into effect on 12 March 2025.
A White House proclamation from US president Donald Trump had previously confirmed that the US would close existing loopholes and exemptions to restore a true 25% tariff on steel and elevate the tariff to 25% on aluminium.
The EU and Canada, along with the UK, were amongst the countries that up until these measures came into effect were granted exemptions which prevented these tariffs from being effective.
President of the European Commission Ursula von der Leyen said in a statement on 12 March: “The trade relations between the European Union and the United States are the biggest in the world. They have brought prosperity and security to millions of people. And trade has created millions of good jobs on both sides of the Atlantic.
“As of this morning, the United States is applying a 25% tariff on imports of steel and aluminium. We deeply regret this measure. Tariffs are taxes. They are bad for business, and worse for consumers.
“They are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. Nobody needs that – on both sides, neither in the European Union nor in the United States.”
She announced that the EU would respond with countermeasures worth €26 billion (c. £21.8bn). A two-step introduction of these countermeasures is planned, beginning on 1 April with the reinstatement of currently suspended rebalancing measures impacting €4.5bn (c. £3.8bn) worth of US goods imported to the EU.
This will be followed on 13 April by additional countermeasures applying to €18bn (c. £15.1bn) of US goods. In the meantime, she said, the EU “will always remain open to negotiations”.
And over in Canada, similar action is being taken. Canada’s minister of finance and intergovernmental affairs Dominic LeBlanc said: “With these tariffs, the US administration is needlessly disrupting an incredibly successful trading partnership. It is a completely unwarranted and unjustified move that will raise costs for Americans and Canadians alike.
“While we actively work to remove these tariffs, our government will use every tool at its disposal to defend Canadian jobs and support our businesses and workers during these challenging times.”
The Canadian Department of Finance announced immediate action, with 25% reciprocal tariffs on steel and aluminium products, as well as additional goods imported to Canada from the US including tools, computers and servers, display monitors, sport equipment and cast-iron products, taking effect from 13 March. These goods are estimated to total C$29.8bn (c. £16.0bn) in value.
Trump addressed these countermeasures in a White House press conference, claiming that the EU treats the US “very badly” and declaring: “We’re going to be doing reciprocal tariffs, so whatever they charge us, we’re charging them.”
The UK steel industry is also set to be impacted by the measures that came into effect on 12 March, with the UK having exported £388 million worth of steel to the US in 2023. UK minister of state at the Department for Business and Trade Douglas Alexander MP initially told the House of Commons that a “knee-jerk reaction” was not in the best interests of the nation.
After the measures were introduced, UK prime minister Sir Keir Starmer said in the House of Commons: “Obviously, like everybody else, I’m disappointed to see global tariffs on steel and aluminium, but we will take a pragmatic approach. We are negotiating an economic deal [with the US] which covers and includes tariffs if we succeed, but we will keep all options on the table.”
This follows Starmer’s visit to the White House on 27 February, during which a trade deal between the UK and the US was discussed.
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