American tariffs affect around $28 million worth of goods; the European Commission said its countermeasures will affect American goods worth €26 billion ($28.3 billion). These “strong but proportionate” tariffs, as described by the European Commission’s president Ursula von der Leyen, will go into effect from 1 April.

Brussels has so far reinstated measures on America-made products that were initially introduced during Trump’s first term. These include €4.5 billion worth of bourbon whiskey, peanut butter, jeans, and Harley-Davidson motorcycles, which will face levies of up to 50%.

EU member states have planned a second tranche of tariffs to come into effect in mid-April, which would target even more US goods, in industrial and agricultural sectors.

In the recent past, Canada’s retaliatory tariffs have gone further than targeting necessities (including energy and gas): conventionally American products, such as nachos, wings, and beer, have come under fire, and must now be made with either local Canadian or Mexican/European ingredients.  

The UK and Australia, historically some of the US’ closest allies, have not yet enacted any retaliatory measures – UK Business Secretary Jonathan Reynolds is focussed on a “pragmatic approach”. Nonetheless, both governments seem disappointed by Trump’s tariffs, and neither have ruled out countermeasures. UK Prime Minister Keir Starmer said he will “keep all options on the table”, and Australian Prime Minister Anthony Albanese argued that the tariffs went against “the spirit of the two nations’ enduring friendship”. 

The acrimonious dispute between the US and its allies has disrupted stock markets. Once bullish forecasts for stocks have been significantly scaled back after the S&P 500 index lost 2.7% on Monday; similarly, the Nasdaq Composite lost 4%. Bank stocks have sunk significantly, but one of the biggest to suffer has been Tesla, which fell 15.4%. Since December, Tesla has fallen more than 50%, giving up its post-election gains in swathes.