EU slams US tariffs on Canada, Mexico as threat to global trade

BRUSSELS — The European Commission condemned the tariffs imposed by U.S. President Donald Trump against Canada and Mexico on Tuesday, as tensions over trade and the war in Ukraine soar between the historic allies.

“We call on the United States to reconsider its approach and work towards a cooperative, rules-based solution that benefits all parties,” the European Union executive said in a statement.

“This move risks disrupting global trade, harming key economic partners, and creating unnecessary uncertainty at a time when international cooperation is more crucial than ever,” it added.

Trump on Monday evening announced new 25 percent tariffs on all Mexican and Canadian goods beginning Tuesday and 10 percent tariffs on energy imports from Canada, moving a step closer to triggering a full-scale trade war with America’s biggest trading partners.

Brussels, speaking on behalf of the EU’s 27 member countries, expressed solidarity with Canada and Mexico, describing them as “not only close allies of the EU but also vital economic partners.” Its statement made no mention, however, of Trump’s decision to double tariffs against China to 20 percent.

It was backed by Bernd Lange, chair of the European Parliament’s international trade committee: “We stand in solidarity with our Canadian and Mexican partners, whose trade relations depend almost entirely on the U.S.,” Lange said in a statement.

“It is incomprehensible why the U.S. puts illegal and completely unjustified tariffs on its allies, thereby disrupting entire North American value chains and completely undermining the operations of companies,” said Lange. “Make no mistake, American companies, workers and consumers will suffer too. There is no winner in a trade war, only losers. Of course the additional tariffs on China also don’t seem to be based on an objective analysis.”

Trump has also threatened to hit Europe with wide-ranging tariffs that could wreak havoc on the $1.7 trillion transatlantic trading relationship. And the EU has said it would take “firm and proportionate” measures in response to 25 percent U.S. tariffs on steel and aluminum due to take effect from March 12.

Unjustified decision

Responding to the U.S. tariffs, Canadian Prime Minister Justin Trudeau said: “Canada will not let this unjustified decision go unanswered.” He announced tariffs of 25 percent on $30 billion worth of American goods immediately, and on a further $125 billion of U.S. goods in 21 days’ time.

China’s Ministry of Commerce also announced it will impose up to 15 percent tariffs on select U.S. imports, including farm products such as chicken, pork, soy and beef, from March 10. The deadline is a signal that Beijing still hopes to negotiate with Trump before the duties snap into effect. It also added 15 U.S. firms to China’s export control list.

In an attempt to join arms in anticipation of a Trump trade war, the EU concluded talks on a trade agreement with Mexico just a few days before his inauguration. Brussels also has an agreement with Canada.

Ari Hawkins, Sue Allan, Jakob Weizman and Phelim Kine contributed reporting. This story has been updated.