WASHINGTON--Donald Trump threatened on Wednesday to escalate a global trade war with further tariffs on European Union goods, as major U.S. trading partners said they would retaliate for trade barriers already erected by the U.S. president. Just hours after Trump's 25% duties on all U.S. steel and aluminum imports took effect, Trump said he would impose additional penalties if the EU follows through with its plan to enact counter tariffs on some U.S. goods next month
. "Whatever they charge us, we're charging them," Trump told reporters at the White House. Trump's hyper-focus on tariffs has rattled investor, consumer and business confidence and raised recession fears. He also has frayed relations with Canada, a close ally and major trading partner, by repeatedly threatening to annex the neighboring country. Canada, the biggest foreign supplier of steel and aluminum to the United States, announced 25% retaliatory tariffs on those metals along with computers, sports equipment and other products worth $20 billion in total. Canada has already imposed tariffs worth a similar amount on U.S. goods in response to broader tariffs by Trump. "We will not stand idly by while our iconic steel and aluminum industries are being unfairly targeted," Canada's Finance Minister Dominic LeBlanc said. Canada's central bank also cut interest rates to prepare for economic disruption. Trump's action to bulk up protections for American steel and aluminum producers restores effective tariffs of 25% on all imports and extends the duties to hundreds of downstream products, from nuts and bolts to bulldozer blades and soda cans. U.S. Commerce Secretary Howard Lutnick said Trump would impose trade protections on copper as well. A Reuters/Ipsos poll found 57% of Americans think Trump is being too erratic in his effort to shake up the U.S. economy, and 70% expect the tariffs will make purchases more expensive. The 27 countries of the European Union are less exposed, as only a "small fraction" of targeted products are exported to the United States, according to Germany's Kiel Institute. The EU's counter-measures would target up to $28 billion worth of U.S. goods like dental floss, diamonds, bathrobes and bourbon - which likewise account for a small portion of the giant EU-U.S. commercial relationship. Still, the liquor industry warned they would be "devastating" on its sector. Commission President Ursula von der Leyen said the bloc will resume talks with U.S. officials. "It is not in our common interest to burden our economies with such tariffs," she said. At the White House, Trump said he would "of course" respond with further tariffs if the EU followed through on its plan. With Irish Prime Minister Micheal Martin at his side, Trump criticized the EU member country for luring away U.S. pharmaceutical companies.
