U.S. President Donald Trump has warned of imposing larger tariffs on the European Union and Canada. His threat comes in response to potential economic harm to the U.S., should both entities decide to collaborate against the country. The President expressed his stance via a post on Truth Social.
On Wednesday, President Trump announced a 25% tariff on imported vehicles, triggering criticism and threats of retaliation from U.S. allies affected by the move. The European Commission President Ursula von der Leyen and Canadian Prime Minister Mark Carney were among those who voiced their disapproval. Von der Leyen described the move as detrimental to businesses and consumers, while Carney considered the tariffs a direct attack on Canadian workers.
The newly announced levies on cars and light trucks are set to take effect on April 3. This follows a day after Trump’s planned announcement of reciprocal tariffs targeting countries responsible for the majority of the U.S. trade deficit. These tariffs are in addition to the already introduced duties on steel and aluminum, and on goods from Mexico, Canada, and China.
In response to these developments, the EU has planned to delay its first set of counter-measures until mid-April. These measures include a 50% tariff on U.S. bourbon. In retaliation, Trump has threatened to impose a 200% tariff on all wines and other alcoholic products from the EU, should the bloc proceed with their plans.
Reiterating his stance, President Trump warned on Truth Social, "If the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!" The escalating trade tensions continue to unfold with potential implications for global markets.
