In a significant escalation of global trade tensions, U.S. President Donald Trump has doubled down on protectionist measures, threatening increased tariffs against both Canada and the European Union on March 13, 2025.

The U.S. implemented a 25% tariff on steel and aluminum imports from all countries, with Trump threatening to raise that to 50% specifically for Canadian imports [1]. This came after a brief diplomatic crisis where Ontario had imposed, then suspended, a 25% surcharge on electricity exports to the United States.

In a parallel development, Trump threatened to impose a 200% tariff on European wines, champagnes and spirits if the EU proceeds with its planned tariff on American whiskey scheduled for April 1 [2]. The president characterized the EU as "one of the most hostile and abusive taxing and tariffing authorities in the World."

Canada announced retaliatory measures worth CAD 29.8 billion (approximately USD 20.6 billion) [1]. The countermeasures target American steel, aluminum, and various consumer goods including tools, electronics, and sports equipment.

The trade tensions have already impacted financial markets, with the Dow Jones Industrial Average falling about 500 points, or 1.1% [2]. The S&P 500 declined 0.8% to trade just under 5,600.

Diplomatic efforts to resolve the crisis continue, with Canadian officials including Finance Minister Dominic LeBlanc, Ambassador Kirsten Hillman, and Ontario Premier Doug Ford scheduled to meet with U.S. Commerce Secretary Howard Lutnick [1]. The meetings aim to get "a coherent sense of the Trump administration's plans for tariffs."