Washington, D.C.: Amid escalating trade tensions, U.S. President Donald Trump has doubled down on his stance against the European Union (EU) and Canada, warning of larger tariffs if both nations collaborate in ways that harm the American economy.
In a post on his social media platform, Truth Social, Trump issued a strong statement, saying:
“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”.
Trump’s 25% Tariff on Imported Vehicles Sparks Global Backlash
The remarks come just a day after Trump made a major trade policy announcement from the Oval Office, declaring a 25% tariff on all imported vehicles entering the United States. Calling the move “very exciting” for domestic manufacturing, he defended the decision as a step towards protecting American jobs and reducing trade deficits.
However, the decision was met with strong opposition from global leaders. European Commission President Ursula von der Leyen criticized Trump’s tariff hike, calling it “bad for businesses, worse for consumers”, as reported by Reuters.
Canada and EU Prepare Retaliatory Measures
The Canadian Prime Minister, Mark Carney, condemned Trump’s tariff escalation, labeling it a “direct attack” on Canadian workers. He also confirmed that retaliatory measures were being actively considered.
According to Reuters, the newly imposed levies on cars and light trucks will take effect on April 3. These tariffs follow a series of existing duties on steel, aluminum, and other goods from Mexico, Canada, and China—all part of Trump’s ongoing effort to curb the U.S. trade deficit.
In response, the EU has announced a delay in its first set of counter-measures, now expected by mid-April. This includes a 50% tariff on U.S. bourbon, a move aimed at key American exports. However, Trump quickly threatened further retaliation, warning of a 200% tariff on European wines and other alcoholic beverages if the EU proceeds with its planned tariffs.
The Road Ahead: Growing Trade War Uncertainty
As tensions escalate, global markets remain on edge, with economists warning of potential repercussions on international trade, supply chains, and consumer prices. Whether diplomatic negotiations can de-escalate this tariff battle remains to be seen.
