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.”