After back-and-forth tariff threats sent markets to sink again Tuesday, U.S. Commerce Secretary Howard Lutnick and Ontario Premier Doug Ford have announced plans to meet Thursday to renegotiate the free trade treaty known as the USMCA.
Meanwhile, the European Union today announced retaliatory trade action with a series of duties on U.S. industrial and agricultural products that will go into effect from April 1, responding to the Trump administration increase in tariffs on all steel and aluminum imports to 25%. Great Britain, which is not part of the EU, has no plans to announce tariffs on the U.S. but has called the steel and aluminum move “disappointing.”
The U.S. is the second biggest export market for EU steel producers, representing 16% of the total EU steel exports.
Markets fell yesterday after President Donald Trump upped the ante on his Canadian steel and aluminum tariffs, saying in a post on his Truth Social network that he would increase the planned 25% rate on Canadian metals to 50% in response to the country’s retaliation to his previous trade moves, including a surcharge on electricity exports to Michigan, Minnesota and New York.
In anticipation of Thursday’s meeting, Ford has agreed to suspend the surcharge.
Last Friday Friday, Trump announced a 250% tariff on dairy products from Canada, though nothing has yet been finalized. Trump said the tariff would be in response to Canada’s taxes on American dairy products. The president has also expressed his desire for Canada to become the United States’ 51st state, a proposal Canadians oppose.
