U.S. President Donald Trump’s reinstated tariffs on steel and aluminum imports took effect Wednesday morning, igniting immediate retaliation from the European Union (EU) and Canada.

The measures impose a 25% tariff on steel—consistent with Trump’s first term—and an increased 25% on aluminum, up from 15%, with no country spared from the levies. The move marks a sharp escalation in Trump’s protectionist trade agenda, drawing swift counteractions from key allies.

The EU responded by targeting $28 billion in U.S. imports, mirroring the estimated value of its steel and aluminum exports affected by the tariffs. The retaliation will unfold in two phases: first, reinstating suspended tariffs from Trump’s initial term, set to resume in April, covering goods like boats, bourbon, and motorcycles; the second phase will follow two weeks later with additional measures.

Ursula von der Leyen, President of the European Commission, expressed dismay, urging renewed trade talks with the U.S. “In a world of geo-economic uncertainty, burdening our economies with tariffs is not in our common interest,” she told reporters.

Canada, the largest foreign supplier of steel and aluminum to the U.S., hit back with retaliatory tariffs on $29.8 billion (CAD) worth of American goods, effective immediately. This follows Trump’s earlier tariff hikes this month on Canada, Mexico, and China—penalizing the former two for illegal migration and the latter for fentanyl trafficking.

A third wave of tariff increases is slated for April under Trump’s reciprocal taxation framework.

The White House has yet to address the EU’s response specifically, though Trump has broadly warned of harsher countermeasures against retaliatory moves by trade partners. The escalating tit-for-tat risks straining economic ties with allies, intensifying global trade friction as nations grapple with the fallout of Trump’s aggressive “America First” policy revival.