EU, China, and Canada Vow Retaliation Against US Tariffs

A global trade war is brewing as major U.S. trading partners, including the European Union, China, and Canada, have announced plans to retaliate against President Donald Trump’s newly imposed tariffs on imports. The escalating tensions could have serious economic consequences, with experts warning of potential stagflation and disruptions to global markets.

Rising Tariffs Spark Global Backlash

On Wednesday, Trump announced sweeping new tariffs, including a baseline 10% duty on all U.S. imports, with higher rates specifically targeting imports from the EU, China, and other nations. Additionally, a 25% levy on auto imports took effect Thursday. Trump called the move "Liberation Day" for the U.S., signaling a strong protectionist stance.

In response, European Commission President Ursula von der Leyen said Thursday that the EU was already working on countermeasures, with an initial package of tariffs on U.S. steel imports nearing completion. Speaking in Samarkand, Uzbekistan, she warned that the EU was preparing for additional steps if negotiations with Washington fail.

"There seems to be no order in the disorder, no clear path to the complexity and chaos that is being created," von der Leyen said.

China and Canada Ready to Fight Back

China has also vowed to "resolutely adopt countermeasures" in response to the U.S. tariffs. In a statement published by state media, China’s Commerce Ministry declared that it would take necessary action to safeguard its economic interests.

Meanwhile, Canadian Prime Minister Mark Carney joined the growing chorus of opposition, stating:
"We are going to fight these tariffs with countermeasures."

Trade Tensions Threaten Global Markets

According to U.S. officials cited in an Axios report, the 25% tariff on Canadian and Mexican imports will remain in place until both countries tighten border controls in accordance with the United States-Mexico-Canada Agreement (USMCA). Canadian officials are bracing for additional U.S. tariffs on pharmaceuticals, lumber, and semiconductors.

Carney urged a unified response, stating:
"In a crisis, it's important to come together. It's essential to act with purpose and with force, and that's what we'll do."

What’s Next?

With the new U.S. tariffs set to take effect next Wednesday, international leaders are scrambling to finalize their countermeasures. Economists warn that an all-out trade war could drive up prices, disrupt supply chains, and hurt global economic growth.

As tensions escalate, all eyes are on the U.S. and its trading partners to see whether negotiations will ease the pressure—or if economic retaliation will push the world closer to financial uncertainty.