Wed, 12 Mar 2025

Wed, 12 Mar 2025 Trade war escalates as Trump pledges more tariffs

Trump repeated trade threats after the European Union and Canada retaliated to US steel and aluminium tariffs.

* Trump has pledged to impose more tariffs after EU and Canada retaliated against US steel and aluminium import taxes.
* He repeated his warning to introduce "reciprocal" tariffs on countries around the world next month, saying "whatever they charge us with, we're charging them".
* The threat marks a further escalation of the trade war, which has rattled financial markets amid concerns over economic impact.
* US tariffs have been imposed at 25% on steel and aluminium imports from several countries, including Canada and EU members.
* Leaders in Canada and Europe called the new metals taxes unjustified and struck back with their own tariffs on US products.
* UK Prime Minister Sir Keir Starmer said the country will take a pragmatic approach but keep all options on the table.
* Canada announced it would start charging 25% tax on nearly $20bn worth of US products, including steel, computers and sports equipment.
* EU President Ursula von der Leyen said the response was intended to be "strong but proportionate" and added that the EU stood ready to engage in a meaningful dialogue with Trump.
* Critics say the tariffs will raise prices for US consumers and dent economic growth.
* Major packaged food makers, including Quaker Oats and Folgers coffee, asked Trump for targeted exemptions from tariffs on imports such as cocoa and fruit.
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