US Tariff Reaction / EU and Canada retaliate, give a blow to Trump, will impose tariffs on many products

Donald Trump's decision to raise tariffs on steel and aluminum imports prompted a strong response from Canada and the European Union (EU). Canada imposed a 25% tariff on steel products, while the EU raised taxes on beef, bourbon and motorcycles. This increased uncertainty in global trade.

US Tariff Reaction: Global trade partners have immediately retaliated against the tariffs raised by US President Donald Trump on aluminum and steel imports. Many countries have imposed new and stringent taxes on US products, increasing tensions in global trade.

Canada's response

Canada, the largest supplier of steel and aluminum to the US, has announced that it will impose a 25% retaliatory tariff on steel products. Apart from this, Canada also plans to increase taxes on many other items including equipment, computers and servers, display monitors, sports equipment and raw iron products. This move can cause huge economic losses to American companies.

European Union (EU) response

The European Union (EU) has also decided to increase tariffs on US beef, poultry products, bourbon, motorcycles, peanut butter and other commodity products. European Commission President Ursula von der Leyen said that this move will increase prices and affect jobs in both the US and Europe. He said, “We deeply regret this decision. Tariffs are bad for business and even worse for consumers.”

Impact on global trade

The new tariff rates are likely to cause billions of dollars in losses to companies. This will increase uncertainty in the global market and affect the trade balance. Companies will either have to cut their profits or pass on the increased cost to consumers, which will affect the purchasing power of the common people.

Possibility of talks between Canada and America

Canada's future Prime Minister Mark Carney said on Wednesday that he is ready to meet Trump, provided he shows 'respect for Canadian sovereignty' and agrees to adopt a common and more comprehensive approach to trade. Carney will be sworn in on Friday and expressed confidence that the economic and security partnership of the two countries can be strengthened again.

Conclusion

The global reaction against the US tariff hike makes it clear that this policy will not only affect the trade balance but can also create economic crisis for consumers and companies. This will increase uncertainty in trade relations globally, which can have a negative impact on the market. Now it remains to be seen what steps the US and its major trading partners take to resolve this situation.