Trump imposes sweeping 25% steel and aluminum tariffs. Canada and Europe swiftly retaliate

President Donald Trump imposed sweeping 25% tariffs on all steel and aluminum imported into the United States Wednesday, a policy aimed at leveling the playing field for US manufacturing but a move that threatens to drive up prices on a broad range of consumer and industrial goods for Americans.

It’s the latest salvo in Trump’s multifaceted tariff plan aimed at correcting perceived trade imbalances and reigniting domestic industry. But it risks igniting a global trade war. The European Union, hit for the first time by higher US tariffs since Trump returned to the White House, retaliated within hours with countermeasures on US goods exports. And later Wednesday, Canada announced over $20 billion in retaliatory measures as well.

Trump on Wednesday in the Oval Office said the United States would up the ante after the European and Canadian retaliation, but he did not spell out how or when the United States would respond.

“Of course I will respond, Trump said.

The tariffs on steel and aluminum mark the first time in Trump’s second term that a set of tariffs has been applied to all countries.

Imposing steel and aluminum tariffs poses a risky bet: Although it could give America’s steel and aluminum industries a boost, it will raise prices on a key ingredient for American manufacturers, which could be passed on to consumers. The costs could outweigh the benefit.