Wall Street trembled Thursday after the U.S. announced it would hit the North American Free Trade Agreement (NAFTA) partners and the European Union with 25 percent duties on imported steel and 10 percent on aluminum.
President Trump first announced the tariffs in March, but granted Canada, Mexico and the EU limited exemptions. Now, those are in full force. The president called the metal imports a national security risk.
In response, the EU says it will impose retaliatory tariffs on $3 billion of American imports as soon as June 20.
European officials, bracing for the tariffs, have threatened to retaliate against U.S. orange juice, peanut butter, bourbon whiskey and Harley Davidson motorcycles, among other items.
The EU says it will release its exact “counter-measures” in the coming weeks.
Mexico said it would penalize U.S. imports including pork, apples, grapes, cheeses and flat steel. Canada has also named its proposed targets of U.S. goods, including a long list of food items.