Published by Global Banking & Finance Review®
Posted on March 12, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleTrump plans to counter EU tariffs and criticizes Irish tax policies for attracting US firms. New tariffs on steel and aluminum heighten global trade tensions.
By Andrea Shalal
WASHINGTON (Reuters) - U.S. President Donald Trump on Wednesday vowed to respond to the European Union's threat to impose counter tariffs on 26 billion euros ($28 billion) worth of U.S. goods from next month after Trump implemented blanket tariffs on steel and aluminum imports.
"Of course I will respond," Trump told reporters at the start of a meeting with Irish Prime Minister Micheál Martin in the Oval Office. He said Ireland, a member of the European Union, was among countries taking advantage of the United States.
Trump said Ireland had used its tax policies to lure away pharmaceutical and other companies from the United States, but U.S. reciprocal tariffs would help rebuild U.S. manufacturing.
"There's a massive deficit that we have with Ireland and with other countries," he said, saying he blamed U.S. leadership for allowing U.S. pharmaceutical companies and others to move to Ireland due to its tax policies.
"I have great respect for Ireland ... but the United States shouldn't have let it happen," he said.
Trump's increased tariffs on all U.S. steel and aluminum imports took effect on Wednesday, ratcheting up a global trade war and drawing swift retaliation from Canada and Europe.
Trump's action to bulk up protections for American steel and aluminum producers restores effective tariffs of 25% on all imports of the metals and extends the duties to hundreds of downstream products.
Canada, the biggest foreign supplier of steel and aluminum to the United States, announced 25% retaliatory tariffs on those metals along with computers, sports equipment and other products worth C$29.8 billion in total. Canada's central bank also cut interest rates to prepare the country's economy for the damage.
The European Commission said it would impose counter tariffs on up to 26 billion euros ($28 billion) worth of U.S. goods next month.
(Reporting by Andrea Shalal; Editing by Chizu Nomiyama and Andrea Ricci)
Trump stated that Ireland used its tax policies to attract U.S. pharmaceutical and other companies, which he believes has contributed to a massive trade deficit.
Trump announced that he would respond to the EU's threat of counter tariffs and emphasized that U.S. tariffs would help rebuild American manufacturing.
The European Commission plans to impose counter tariffs on up to 26 billion euros worth of U.S. goods, which could escalate the ongoing trade war.
Canada announced 25% retaliatory tariffs on U.S. steel and aluminum, as well as on computers, sports equipment, and other products worth C$29 billion.
Trump's tariff policies are aimed at protecting U.S. industries, but they have sparked retaliatory measures from other countries, raising concerns about a global trade war.
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