U.S. Moves to Tariffs Over Talks as Canada Deal Ends, EU Retaliation Grows

President Trump has made clear that the United States is shelving the idea of a new trade deal with Canada and threatening major new tariffs on both Canada and Europe.

This marks a sharp shift in trade policy that is already causing ripples for international business. With Canada, negotiations have broken down. The US will soon apply up to 35% tariffs on some Canadian goods.

These new taxes add to earlier US tariffs—25% on most Canadian products and 50% on key metals—all of which Canada has answered by taxing nearly $30 billion in US goods at 25%.

Both countries depend on this flow; official data shows their annual goods trade exceeded $760 billion last year. Higher tariffs are already making production costlier for factories and raising prices for consumers on both sides of the border.

The situation with Europe is just as tense. The US has told the European Union it will hit their exports with a 30% tariff starting August 1, unless a new trade agreement is signed.

EU Retaliates with Record Tariffs as Trade Tensions with U.S. Escalate

In response, the EU has voted to hit back with its largest package of counter-tariffs ever—targeting $109 billion in US products like cars, whiskey, aircraft, and technology.

Some of these tariffs will start in August, with the rest phased in later if the US tariffs proceed. The EU has held off on these taxes so far in hopes of reaching a negotiated settlement.

European and US officials say talks continue, with possible compromises including a broad 15% tariff on EU products imported to the US. Yet, as of today, no deal is done, and both sides confirm that big problems remain—particularly over high US tariffs on steel and other goods.

These decisions are not speculation. They follow official government statements, trade lists, and signed laws. The stakes are high for workers and businesses across North America and Europe.

Supply chains that built decades of trust and stability now face unpredictable costs and future. For millions of companies and households, the reality of tariffs and lost deals is already here.