Trump Trade War 2.0
trade-wars
Steel and aluminium tariffs trigger a two-phase EU retaliation package, then a threatened 200% tariff on French wine catches even Trump’s own Treasury Secretary off-guard.
On March 12, 2025, the administration’s 25% tariffs on steel and aluminium imports drew a retaliatory EU package targeting up to €26.5 billion of US exports in two phases, including bourbon, motorcycles, and agricultural goods. The next day Trump escalated further, threatening a 200% tariff on French wine and EU alcohol more broadly — reportedly catching Treasury Secretary Scott Bessent off-guard. Canada matched with its own 25% counter-tariffs on goods like computers and sporting equipment. EU leaders signalled openness to negotiation while warning plainly that “tariffs are taxes” that damage businesses and consumers on both sides.
Originally published on Substack, March 13, 2025.