Trump’s tariff threats towards the EU, Canada, and Mexico have come to fruition, and the allies swiftly attacked back. President Trump imposed tariffs on steel and aluminum producers after granting Europe, Canada, and Mexico a two-month temporary reprieve. 

The EU companies would be hit with a 25% duty on steel and a 10% duty on aluminum. The US commerce secretary, Wilbur Ross, blamed the lack of process to reduce America’s trade deficit to the insufficient progress between the allies. After the announcement, the Dow Jones Industrial Average closed down more than 250 points, as investors began to sell their shares in steel and aluminum manufacturers and corporations. 

The EU has already planned to target Levi’s jeans, Harley-Davidson motorbikes, and bourbon whiskey, all American-made products. The UK is hoping to avoid these tariffs after Brexit. Canada already has issued a response by also placing tariffs up to 25% on US imports on steel, aluminum, orange juice, whiskey, and other food products. This would be the country’s strongest trade action in the postwar era. Mexico also plan to follow suit by also placing tariffs on items such as pork, fruit, and cheeses. Trump claims these tariffs will protect the US from cheap imports. However, a global overproduction of metals is more likely to be the cause. The Trump administration is now looking into placing tariffs on foreign cars.