The European Union has responded swiftly after President Trump’s 25% tariffs on all steel and aluminum imports went into effect at midnight. The EU said it would impose counter-tariffs on over $28 billion of U.S. goods starting in April. Trump’s new tariffs also drew fire from Australia, though Prime Minister Anthony Albanese said his government would hold off — for now — on imposing reciprocal tariffs. On Tuesday Trump backed down from threats to further increase U.S. tariffs on Canada by up to 50%, and kept tariffs at the 25% rate after leaders of Ontario province suspended plans to raise rates on electricity sold to Michigan, Minnesota and New York. Trump’s escalated trade war rattled markets again on Tuesday with the S&P 500 and Nasdaq indices posting their biggest one-day drop in over two years. On Tuesday, House Republicans added language to the House spending bill that effectively revokes Congress’s ability to undo Trump’s tariffs on Mexico, Canada and China anytime this year. We’ll have more on this after headlines.