"Negotiations with US stagnant" EU shifts to retaliatory tariffs... Canada says "will cut off power"

Tariff war escalating

Europe considering tariffs on 260 pharmaceutical products

New Canadian PM "prepared for additional responses"

The tariff war is showing signs of escalation. The European Union (EU) appears to be moving toward retaliatory tariffs as the United States imposes 25% tariffs on foreign steel and aluminum from the 12th and has announced plans to impose reciprocal tariffs on countries worldwide from April 2.

While the EU initially maintained a negotiation stance in the early stages of the trade dispute, it now seems to be shifting to a 'tit-for-tat strategy.' Maroš Šefčovič, EU Commissioner for Trade and Economic Security, expressed a pessimistic view on resolving the trade dispute through negotiations on the 10th (local time), saying, "The US administration does not seem interested in reaching an agreement." He added, "The EU will protect businesses, workers, and consumers from unfair tariffs at any time."

The British daily Telegraph reported that the EU is considering export controls on essential medicines, including antibiotics. The US primarily imports antibiotics, radiopharmaceuticals, and pacemakers from EU countries. The Telegraph noted, "A report prepared by the European Commission in 2021 identified 260 items for which the US is essentially dependent on the EU."

Canada's position is also hardening. Mark Carney, who was elected as the ruling Liberal Party leader and next Prime Minister on the 9th, said, "Tariff measures against the US will be maintained, and additional responses will be considered if necessary," adding, "We must minimize the impact of tariffs on the Canadian economy and address unfairness in trade relations."

Canada has already implemented phase one retaliatory tariffs targeting US imports worth 30 billion Canadian dollars (approximately 30 trillion won). Additionally, it plans to implement phase two retaliatory tariffs worth 125 billion Canadian dollars starting next month on the 2nd. Canada had initially planned to implement phase two retaliatory tariffs from the 21st of this month, but postponed the timing after the US delayed tariffs on items covered by the United States-Mexico-Canada Agreement (USMCA) by about a month.

Ontario, Canada's largest economic region, has also taken retaliatory measures. An Ontario government official warned, "If trade tensions with the US intensify, we could consider strong measures such as cutting off power supplies." Ontario supplies electricity to the eastern United States.

Reporter Lee So-hyun y2eonlee@hankyung.com