Targets of U.S. Aluminum and Steel Tariffs Declare Counter-Measures

As expected, the European Union, Canada and Mexico have announced a broad array of counter-tariffs in response to U.S. import taxes of 10% on foreign aluminum and 25% on foreign steel that went into effect at midnight.

The Trump administration says the levies are necessary to protect national security. But President Donald Trump has long asserted that his goal in imposing such taxes is to equalize gaps in import taxes between the U.S. and its trade partners.

The European Union, which describes the U.S. tariffs as “totally unacceptable,” says it will file a protest with the World Trade Organization. In the meantime, the bloc plans retaliatory tariffs on a long list of U.S. goods. Among the targeted items are steel, cosmetics, whiskey, jeans, tobacco, pleasure boats and various agricultural products.

Canada plans to implement new tariffs on US$12.8 billion in U.S. goods beginning July 1. The country, which says it buys half the steel exported by U.S. producers, will impose a 25% tax on American-made steel. Canada also will levy 10% tariffs on a wide array of products from orange juice and sleeping bags to shaving cream and lawnmowers.

Mexico says it will tax American flat-rolled steel and pipe, along with cheeses, various fruits, sausage and other meats, and other goods. The country describes itself as the largest market for U.S.-made aluminum and the second-largest buyer, after Canada, of American-sourced steel. Much of those imported metals are used by carmakers, including plants operated in Mexico by U.S. vehicle manufacturers.