The global trade war initiated by the United States under President Donald Trump escalated on Wednesday when Canada and the European Union (E.U.) announced tariffs on imports from the U.S.
Canada said it would introduce 25% levies on steel, aluminium, computers, sports equipment and other products while the E.U said it would retaliate with duties on U.S. goods like dental floss, diamonds, bathrobes and bourbon.
"We will not stand idly by while our iconic steel and aluminium industries are being unfairly targeted," Canada's Finance Minister Dominic LeBlanc was quoted in a Reuters story as saying.
Trump responded with a threat of more penalties on the E.U. if it went ahead with its trade sanctions as the crisis that has unnerved global financial markets and threatens to damage economies around the world continued to unfold.
"Whatever they charge us, we're charging them," Trump told journalists.
U.S. Commerce Secretary Howard Lutnick said Trump would also target copper imports with tariffs, which are taxes applied to goods as they enter a country, increasing their cost at a time when inflation is affecting consumers, while lumber (timber) and cars have also been identified as potential products for tariffs.
China has also been dragged into the trade war with the U.S. increasing levies on goods imported from the world’s second largest economy to at least 20%.
These developments came as incoming Canadian Prime Minister Mark Carney held out an olive branch by saying he was prepared to meet with the U.S. President if “there's respect for Canadian sovereignty and we're working for a common approach”.
The E.U. also tried to be more diplomatic with President Ursula von der Leyen saying talks would resume with U.S. officials.
"It is not in our common interest to burden our economies with such tariffs," she was quoted as saying.
Mexican President Claudia Sheinbaum said Mexico would not respond with counter-tariffs until at least 2 April.
Although British Prime Minister Keir Starmer said he was "disappointed" with tariffs on United Kingdom goods, he did not retaliate with levies on American steel and aluminium.
"We are … negotiating an economic deal which covers and will include tariffs if we succeed, but we will keep all options on the table," Starmer said.
