Another Day, Another Tariff, and More Uncertainty | Adams and Reese LLP

Since we last wrote The Kaleidoscope of International Trade: Trump’s Tariffs and What the Mean for You, the Trump administration has caused more uncertainty regarding its tariff policies and stirred more retaliation from other countries. 

The increased and expanded tariffs on all aluminum and steel imports took effect on March 12.[1] President Trump increased the tariffs on all aluminum and steel imports to 25%, ended all prior country exemptions, and terminated the specific product exclusion process and all existing general approved exclusions. The tariffs also apply to more derivative aluminum and steel products and exclude only derivative articles made from aluminum “smelted and cast” and steel “melted and poured” in the United States. 

With the aluminum and steel tariffs taking effect along with the tariffs imposed (and partially delayed) on goods from Canada, Canada has begun retaliating. Canada announced a 25% tariff on certain U.S. goods immediately and additional tariffs to come. On March 10, Ontario imposed a 25 % surcharge on exports of power to 1.5 million people across Minnesota, Michigan, and New York. The Premier of Ontario, Doug Ford, stated he was prepared to further increase the fees on exports of Canadian power to the US and, if necessary, even cut off power completely until President Trump’s threats of tariffs are completely off the table. Premier Ford also ordered all US alcohol products to be removed from Ontario store shelves.

In response, on March 11, President Trump announced plans to double the expected tariffs on aluminum and steel from Canada. Thereafter, both President Trump and Premier Ford backed off the surcharge and the threat of doubling the tariffs and agreed to resume talks. Premier Ford, Canadian Finance Minister Dominic LeBlanc, and Canadian Innovation Minister François-Philippe Champagne were scheduled to meet with Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer on March 13.

President Trump also suggested that he would impose tariffs on dairy and lumber products from Canada, misrepresenting Canada’s tariffs on dairy and lumber products from the US. The over 200% tariffs on US dairy products negotiated during President Trump’s first term are only triggered if the US dairy exports exceed certain annual duty-free limits. Canada’s new tariffs on certain US lumber products were imposed in retaliation to President Trump’s tariffs on goods from Canada.

After the meeting of Canada and US officials on March 13, Premier Ford reported that the meeting was productive, and Commerce Secretary Lutnick agreed to another meeting this week. However, the aluminum and steel tariffs remain in place, and if no further agreement is reached, the tariffs delayed will snap back to cover all Canadian goods on April 2. Canada maintains that it is ready to increase its retaliation if President Trump reimposes the delayed 25 % tariffs on all Canadian goods or imposes new reciprocal tariffs on Canada on April 2. Canada has also formally challenged the US tariffs as a violation of US commitments to the World Trade Organization (WTO). 

The aluminum and steel tariffs have also caused the European Union to promise and implement retaliatory tariffs. After the new tariffs took effect, the EU responded by stating it considers the steel and aluminum tariffs unjustified and illegal. It announced a plan to impose a 50% tariff on imports on certain US goods beginning April 1, including US products ranging from meat, poultry, fruit, and vegetables to Harley-Davidson motorcycles, bourbon, and jeans. The EU also promised further retaliatory tariffs to begin mid-April, subject to the approval of EU member countries. In response, on March 13, President Trump threatened to impose 200% tariffs on wine, champagne, and other alcoholic beverages from the EU.

China’s relatively muted retaliatory tariffs also took effect on March 10. Although President Trump doubled the tariff on goods from China to 20%, China responded with retaliatory tariffs including a 15% additional duty on US chicken, wheat, corn, and cotton and a 10% additional duty on US sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products, among others. China also announced other non-tariff retaliatory actions, which included banning 15 US entities in the defense industry from importing any dual-use items from China. China likewise accused the US of violating WTO rules. 

Congress has also taken note of the impact of the uncertainty surrounding the Trump administration’s scattered messaging on trade and the economy. But the House has chosen to forfeit their ability to legislate these tariffs. Tariffs are typically authorized by Congress, and President Trump has relied on the International Emergency Economic Powers Act (IEEPA) to impose the recent tariffs on China, Canada, and Mexico. The IEEPA has never been used before to impose tariffs but gives the president authority to control international transactions after declaring a national emergency. The House approved language in its recent funding patch that prevents any member of Congress from bringing up a resolution to terminate President Trump’s declaration of a national emergency regarding these tariffs.

The tariff terrain continues to be turbulent with no end in sight. Although the US continues to negotiate its recent tariffs, threats of retaliation and reciprocal tariffs remain on the table. In this ever-changing trade environment, it is important that you understand the tariffs in place and whether they apply to products sourced from overseas manufacturers. 

FOOTNOTES

[1] Proclamation No. 10,895, 90 Fed. Reg. 9807 (Feb. 18, 2025); Proclamation No. 10,896, 90 Fed. Reg. 9817 (Feb. 18, 2025).