Trump’s tariff move expected to hit Canada, Mexico, and the EU hardest

Trump’s plans to impose new steel tariffs are expected to most impact countries like Canada, Mexico, and the EU, while China should largely be spared from major effects.

Brussels has declared that U.S. trade tariffs would be “unlawful,” indicating that the EU might take legal action against Donald Trump’s plans to impose new levies on steel and aluminium imports.

The European Commission stated it has not yet received any official notification regarding these measures following Trump’s overnight announcement of 25% tariffs on all steel and aluminium imports. The commission warned that such tariffs would be illegal and economically counterproductive, especially given the deeply integrated production chains established through transatlantic trade and investment.

This warning suggests that Brussels may pursue legal recourse as Trump ramps up tariffs to correct what he describes as a trade imbalance between the U.S. and the rest of the world.

Speaking on Air Force One while en route to the NFL Super Bowl in New Orleans on Sunday, President Trump asserted that the tariffs would apply universally, declaring, “Any steel coming into the United States is going to have a 25% tariff.”

Earlier, French Foreign Minister Jean-Noël Barrot told TF1 television that the EU should be ready to defend its interests, stating that “the time has come” for the bloc to consider retaliatory measures.

Previously, the EU tried to avert a trade war with the US by hastily cutting taxes on American cars. Last Friday, a senior EU lawmaker revealed that Brussels was preparing to reduce the 10% tariff on US vehicles imported into the bloc in a bid to appease President Trump.

However, following Sunday’s announcement of new tariffs on metals, the French foreign minister affirmed that France and the EU would “of course” respond.