Canada and the European Union quickly unveiled retaliatory levies against the U.S. on Wednesday, hours after President Donald Trump’s sweeping tariffs on imported steel and aluminum imports took effect, triggering more tremors through financial markets and fueling fears of inflation and recession.

Mexican President Claudia Sheinbaum said Wednesday her government will wait for a possible resolution in coming weeks before deciding on retaliation.
Trump’s global tariffs of 25% on all imports of the metals also extend the duties to hundreds of products made from the metals. Trump defended the tariffs in remarks late Tuesday and hinted at the possibility of higher levies in the future.

The action comes amid broad economic upheaval: The National Oceanic and Atmospheric Administration revealed it is laying off 1,029 workers as part of the Trump administration’s mass layoffs across federal departments. Federal agencies face a deadline Thursday to submit plans for large-scale layoffs as part of the administration’s effort to shrink the federal government.
U.S. stocks were mostly higher in afternoon trading Wednesday but have fallen sharply in recent days amid constant news of tariffs and job cuts. J.P. Morgan’s chief economist said Wednesday that there is a 40% chance of a U.S. recession in 2025.