U.S. President Donald Trump has warned that he could impose significantly higher tariffs on Canada and the European Union (EU) if they collaborate in causing economic harm to the United States. In a post on Truth Social, Trump stated that if these nations work together against the U.S., large-scale tariffs, much higher than currently planned, will be enforced to protect the country’s economic interests.
The warning follows Trump’s announcement on Wednesday of a 25% tariff on imported vehicles, further escalating the ongoing global trade conflict. This move has drawn sharp criticism from U.S. allies, with European Commission President Ursula von der Leyen calling it damaging to businesses and consumers, and Canadian Prime Minister Mark Carney describing it as an attack on Canadian workers.
The new vehicle tariffs, set to take effect on April 3, add to existing duties on steel, aluminum, and various goods from countries like China, Canada, and Mexico. As Trump plans to introduce reciprocal tariffs to address the U.S. trade deficit, tensions are rising, with retaliatory measures already being discussed by affected countries.
In response to these developments, the EU is preparing to implement countermeasures by mid-April, including a 50% tariff on U.S. bourbon. Trump has threatened a drastic 200% tariff on EU wines and other alcoholic products if the EU moves forward with its retaliatory actions. The escalating trade dispute has already impacted U.S. financial markets, with the S&P 500 and Nasdaq experiencing significant losses.
source: reuters