Trump's Metals Tariffs Draw Swift Retaliation From Canada and the EU

Europe Could Extend Response to Include Digital Services or Intellectual Property

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WASHINGTON - President Donald Trump's increased tariffs on all US steel and aluminum imports took effect on March 12, stepping up a campaign to reorder global trade in favor of the United States and drawing swift retaliation from Canada and Europe.

Mr. Trump's action to bulk up protections for American steel and aluminum producers restores effective tariffs of 25 percent on all imports of the metals, and extends the duties to hundreds of downstream products, from nuts and bolts to bulldozer blades and soft-drink cans.

Mr. Trump's hyper-focus on tariffs since taking office in January has rattled investor, consumer, and business confidence in ways that economists worry could cause a US recession and further lag on the global economy.

The European Commission, the executive arm of the European Union charged with coordinating trade matters, responded swiftly, saying it would impose counter-tariffs on €26 billion (S$37.8 billion) worth of US goods - often with more symbolic than economic impact - from April.

Nevertheless, commission president Ursula von der Leyen told reporters she had tasked trade commissioner Maros Sefcovic to resume talks with US officials on the matter.

"We firmly believe that in a world fraught with geo-economic and political uncertainties, it is not in our common interest to burden our economies with such tariffs," she said.