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China, Canada, and the European Union have announced retaliatory measures in response to President Trump's imposition or increase of tariffs.

European Union

Effective March 12, 2025, the U.S. began imposing 25 percent tariffs on imports of steel and aluminum and derivative products from all countries. The EU responded with a two-pronged retaliatory response, the first of which was to reinstate tariffs on €4.5 billion worth of imports from the U.S. These tariffs, which had been suspended during President Trump’s first term, will cover “products ranging from boats to bourbon to motorbikes” (see here and here for affected goods).

In the second step the EU planned to impose tariffs on another €18 billion worth of imports from the U.S. Proposed target products (a full list can be downloaded here) include industrial products such as steel and aluminum products, textiles, leather goods, home appliances, house tools, plastics, and wood products as well as agricultural products such as poultry, beef, seafood, nuts, eggs, dairy, sugar, and vegetables.

The EU had planned to have both sets of tariffs in place by mid-April but has delayed imposition until July 14, 2025, to allow time for the U.S. and the EU to hold negotiations on how to resolve the underlying dispute without a further escalation of tariffs  The delay will also give the EU time to evaluate the reciprocal tariffs President Trump began assessing April 2 and adjust its measures accordingly.

Canada

232 Auto Tariffs: On April 8, Canada imposed 25 percent tariffs on (1) fully-assembled vehicles imported from the U.S. that are not compliant with the U.S.-Canada-Mexico Agreement and (2) non-Canadian and non-Mexican content of USCMA-compliant fully-assembled vehicles imported from the U.S.

IEEPA Tariffs: In response to the U.S. tariffs imposed under the International Emergency Economic Powers Act, effective March 4 Canada imposed 25 percent tariffs on C$30 billion worth of goods imported from the U.S., including orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper. A second phase, which was suspended until April 2, saw the imposition fo 25 percent tariffs on additional imports from the U.S., including passenger vehicles and trucks, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, dairy, recreational vehicles, and recreational boats. 

232 Tariffs on Steel & Aluminum: In response to the U.S.' Section 232 tariffs on steel and aluminum, as of 12:01 a.m. on March 13 Canada imposed 25 percent reciprocal tariffs on C$12.6 billion worth of steel products, C$3 billion worth of aluminum products, and C$14.2 billion worth of additional goods imported from the U.S. The list of affected products is available here and includes tools, computers and servers, display monitors, sports equipment, and cast-iron products. Affected goods that were in transit to Canada as of March 13 are exempt. These tariffs only apply to goods originating from the U.S. (i.e., those eligible to be marked as a good of the U.S. under the U.S.-Mexico-Canada Agreement).

China

New! Reciprocal Tariffs: On May 13, China announced that they would lower their retaliatory tariffs to 10 percent and “adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.” These suspensions will take place by May 14 and remain in effect for at least 90 days. Previously China had implemented retaliatory tariffs of 125 percent on U.S. products, as well as new restrictions on rare earth exports, import bans for specific U.S. exporters, additions to its unreliable entity list and dual-use export controls list, and a new antidumping investigation of X-ray tube assemblies for medical CT devices. Read more detail about these measures here. 

March 4 IEEPA Tariff Increase: China announced additional retaliatory measures including additional tariffs of 15 percent on chicken, wheat, corn, and cotton and 10 percent on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products imported from the U.S. China also added additional U.S. entities to its unreliable entity list and its dual-use export control list and initiated its first-ever anti-circumvention initiation relating to U.S. fiber manufacturers. Read more detail about these measures here.

February 4 IEEPA Tariffs: Chinese government authorities announced retaliatory measures including a 15 percent tariff on coal and liquefied natural gas and a 10 percent tariff on crude oil, agricultural machinery, automobiles (>2,500cc), and pickup trucks from the U.S. China also added two U.S. entities to its unreliable entity list and imposed new restrictions on exports of some critical materials and technology. Read more detail about these measures here.

Recommendations: It is expected that U.S. companies’ subsidiaries in China will face more audits and investigations by Chinese authorities,as well as higher duty costs for selling goods to China. To mitigate these risks, ST&R’s Asia-based trade professionals can help companies monitor regulatory updates; understand Chinese regulations and Chinese authorities’ enforcement priorities; conduct internal risk assessments; respond to audits by Chinese authorities, including China Customs, Tax Bureau, and Ministry of Commerce; negotiate with authorities on case settlement; and restructure supply chains.

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