Europe Union fires back in US trade war

From Harley Davidsons to Kentucky bourbon, some of America’s favourite exports will be subject to new tariffs in Europe. It comes as Canada implements fresh levies in a trade war escalation.

Europe has immediately moved to slap retaliatory levies on the United States, announcing

A$44 billion of levies on American goods including bourbon, boats and motorcycles.

The European Union’s countermeasures to America’s 25 per cent steel and aluminium tariffs will target Republican-held states and come into play from April 1.

Meanwhile, Canada announced new A$33 billion tariffs on US imports of computers, sports equipment and cast iron products.

Canadian Finance Minister Dominic LeBlanc said the new levies would come into effect of Thursday local time.

“I am announcing that the government of Canada, following a dollar-for-dollar approach, will be imposing … 25 per cent reciprocal tariffs on an additional C$29.8 billion (A$33 billion) of imports from the United States,” he said.

“This includes steel products worth C$12.6 billion (A$13.9 billion) and aluminium products worth C$3 billion (A$3.3 billion) as well as additional imported US goods worth C$14.2 billion (A$15.6 billion).”

Kentucky bourbon will cost you a pretty penny in Europe.

European leaders have called for further talks with Washington amid the escalating global trade war.

“I think we have enough war in the world, we need to stop the wars we have and not create a trade war,” EU Council chief Antonio Costa said.

“We don’t want to escalate, the good way is to de-escalate.”

German Chancellor Olaf Scholz criticised Donald Trump’s sweeping tariffs.

“I think the decisions on tariffs by the USA are wrong and we will react to them appropriately and quickly,” he said.

European Commission President Ursula von der Leyen said the EU’s response was proportional to the US measures.

President of the European Commission Ursula von der Leyen believes their response is fair. Picture: AFP

“As the US are applying tariffs worth 28 billion dollars, (A$44 billion) we are responding with countermeasures worth 26 billion euros (A$45 billion),” she said in a statement.

“The commission manages trade and commercial conflicts on behalf of the 27 member EU countries.

“We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs.”

British Prime Minister Keir Starmer said he was “disappointed” about the tariffs but said the UK would not retaliate as negotiations continued.

“Obviously, like everybody else, I’m disappointed to see global tariffs in relation to steel and aluminium, but we will take a pragmatic approach,” Sir Keir said.

Britain is “disappointed” about the steel tariffs but won’t be retaliating. Picture: AFP

He said Britain was keeping “all options on the table” as it looked to find a suitable solution.

Europe’s countermeasures will be rolled out in stages, starting by lifting a pause on previous tariffs imposed under the previous Trump administration and paused under Joe Biden.

They will include 50 per cent levies on well-known American products including Harley-Davidson motorcycles and Kentucky bourbon.

Further measures are being drawn up to take effect from mid-April, including tariffs on watermelons, white chocolate and soybeans.

German Chancellor Olaf Scholz and European Council President Antonio Costa announced their tariffs in a joint press conference. Picture: AFP

The EU’s moves came after similar steps by Canada to hit back at Mr Trump’s tariffs by imposing a 25 per cent fee on electricity exported to the US.

But after a dramatic escalation in which Mr Trump threatened to double Canada’s steel tariff to 50 per cent and annex the country, Ontario’s Premier Doug Ford backed down – returning to the negotiating table with Commerce Secretary Howard Lutnick.

“Secretary Lutnick and President Trump are brilliant business people,” Mr Ford said. “They are hard negotiators.

“We need to put this behind us and move forward and build the two strongest countries in the world.”

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US BORDER CZAR SAYS ICE AGENTS WILL ‘FLOOD NYC’

US border czar Tom Homan has warned that immigration agents could “flood New York” if Goernor Kathy Hochul doesn’t cooperate on immigration crackdowns.

Mr Homan warned Governor Hochul and Democrats against defending sanctuary city policies.

“Sanctuary cities are going to get exactly what they don’t want: more ICE agents in your community,” he said.

White House 'border czar' Tom Homan warned that New York will be flooded by immigration agents if the Governor doesn’t cooperate on immigration policies. Picture: AFP

“We’ll double the man-force if we have to. Rather than one officer arresting a bad guy, now I have to send a whole team.”

When Mr Homan was asked if he would meet with Governor Hochul while in New York, he said, “She knows my number.”

Mr Homan’s comments came during a rally by Republican politicians pushing to repeal the state’s Green Light Law, which allows undocumented immigrants to get driver’s licences, as well as pass New York’s Laken Riley Act, which aims to undercut sanctuary city policies.

Originally published as Europe Union fires back in US trade war