A 25% tariff on all steel and aluminum imports to the U.S. is set to take effect Wednesday, part of President Donald Trump’s push to impose new taxes on U.S. trading partners and an expansion of the metals tariffs he imposed during his first term—prompting retaliatory measures from the European Union that will hit goods from Republican-held states.

The U.S. gets most of its imported aluminium products from Canada (more than $9.4 billion in 2024) —which will be hit by the planned 50% tariffs—followed by the United Arab Emirates ($917 million) and China ($809 million), while the rest of the world supplied just under a combined $7 billion, according to the Department of Commerce.

Canada is also the top source for imported steel mill products to the U.S. ($7.1 billion in 2024), followed by Mexico ($3.5 billion), Brazil ($3 billion) and South Korea ($2.9 billion), with around $15 billion sourced from the rest of the world, the Department of Commerce says.

Aluminum parts for cars, trucks, buses and tractors is the largest import category that will be hit by the new tariffs, according to a Reuters analysis of trade data, accounting for $25.7 billion in imports last year. That’s followed by metal furniture and furniture parts ($15 billion), and industrial machinery and parts ($9 billion), though it’s unclear whether companies that use and sell the products will transfer costs to consumers. Car prices could go up by $1,000 to $1,500, Dean Baker, a left-leaning senior economist at nonpartisan The Center for Economic and Policy Research, told CBS. The 25% tariff on Canadian and Mexican steel imports could add $6,250 to the average $25,000 price of a car imported to the U.S. from those two countries, Baker told CBS. Meanwhile, National Association of Homebuilders Chair Carl Harris warned in a recent statement that consumers will ultimately pay for the higher price of building a home under the metals tariffs.

The E.U. will phase in retaliatory tariffs on April 1, hitting U.S. imports it also taxed between 2018 and 2020, it announced Wednesday. The tariffs are aimed at red states and target products including beef and poultry from Kansas and Nebraska, soybeans from Republican House Speaker Mike Johnson’s home state of Louisiana, peanut butter and jeans. The E.U. said it would implement another wave of tariffs April 13 on $19 billion in additional products yet to be identified, for a total of $28 billion, a figure the E.U. said is equal to the tariffs charged by Trump.

Trump imposed a 25% tariff on steel and a 10% tariff on aluminum imports during his first term, but later granted some exemptions, including to Mexico and Canada, before former President Joe Biden partly removed most of the tariffs in place of quotas that trigger additional levies. Prices for both steel and aluminum went up about 2% and imports fell by 24% for steel and 31% for aluminum between 2018 and 2021, according to the U.S. International Trade Commission, which found U.S. steel production increased by about 2% and aluminum production went up about 4%. The tariffs boosted job growth for domestic steel producers, but led to job losses in industries that rely on steel—which employ far more people combined than U.S. steel mills—such as construction, auto, oil, gas and electric, according to the Council on Foreign Relations. The manufacturing sector lost about 75,000 jobs as a direct result of the metals tariffs, according to a 2020 study by University of California, Davis economics professor Kadee Russ and University of Wisconsin-Madison assistant professor Lydia Cox for Econofact. U.S. steel prices rose 5% in the month after the tariffs first went into effect and aluminum prices increased 10%, according to Reuters, which found prices returned to their pre-tariff levels within several months, but slower than they rose, with aluminum prices falling faster than steel. The metal tariffs combined ultimately cost taxpayers more than $900,000 each year for every job saved or created, the Washington Post reported in 2019, citing a study by the Peterson Institute for International Economics.

Trump has vowed to impose reciprocal tariffs on all U.S. trading partners beginning April 2, plus 25% tariffs on all imports from Mexico and Canada. Trump initially imposed the Mexican and Canadian tariffs on March 4, but paused the plan several days later to give the countries time to meet his demands for stricter controls on illegal immigration and fentanyl crossing the borders. An additional 10% levy on all Chinese imports, on top of the 10% tax imposed earlier this year, took effect as planned on March 4. In retaliation, Canada announced a 25% tariff on $20.7 billion USD worth of U.S. goods that officials said would stay in place despite Trump’s decision Thursday to delay the taxes for a month, though Canada cancelled a second round of retaliatory tariffs that would have taken effect three weeks later. China responded by increasing import duties by 10-15% on several key American agricultural food products and expanding export controls on 15 U.S. firms.

Europe Retaliates Against U.S.: EU Announces $28 Billion In Tariffs To Counter Trump’s Steel And Aluminum Levies (Forbes)

Ontario Suspends 25% Electricity Charges After Trump Threatens Double Tariffs (Forbes)

Trump Threatens New Tariffs On Canada As Soon As Today—After Halting 25% Levies (Forbes)

Trump Doubling Tariffs On Canadian Steel And Aluminum In Retaliation For Ontario Electricity Charges (Forbes)

Trump Bails On Most Mexico And Canada Tariffs For 1 Month (Forbes)