Washington (Brussels Morning Newspaper) – US President Donald Trump has threatened to impose “far larger” tariffs on the European Union and Canada if they cooperate on reducing trade tariffs.
A day earlier, the White House leader had announced that he plans to impose a 25% tariff on
“all cars not manufactured in the United States,”
effective April 2.
Will Scharf, an aide from the Trump White House, stated that the new responsibilities pertain to
“foreign-manufactured vehicles and light trucks”
and are supplementary to existing tariffs place. He projected that the actions will generate
“more than $100 billion in new yearly revenue”
for the U.S.
What did Trump say regarding larger tariffs on the EU and Canada?
“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 posted on social media platform Truth Social.
What effect does the Trump announcement have on global markets?
The U.S. has already implemented 25% tariffs on Canadian goods and 10% tariffs on energy and potash imports from Canada. Trump previously declared a wide-ranging 25% tariff on imports from the EU.
Global markets experienced turmoil as a new front emerged in the expanding international trade war. Shares of U.S. and Asian automakers dropped following the announcement, and European auto giants are anticipated to experience similar declines at the market opening on Thursday.
Trump has disrupted longstanding global trade relationships by implementing import tariffs on products from Mexico, Canada, and China, and tariffs on all imports of steel and aluminum, due to perceived unfair trade deficits that the U.S. holds with several major trading partners.
What are the responses of the EU and Canada to Trump’s recent announcement?
The EU and Canada have not made any statements indicating a plan to harm the U.S., as suggested by Trump’s post. However, both have indicated they might retaliate against the recent measures imposed.
European Commission President Ursula von der Leyen stated the EU
“will continue to seek negotiated solutions, while safeguarding its economic interests.”
“Tariffs are taxes — bad for businesses, worse for consumers equally in the U.S. and the European Union,”
She expressed in a statement.
Canada’s Prime Minister Mark Carney characterized Trump’s action as “a direct attack” and informed reporters that he would hold a high-level cabinet meeting on Thursday to determine an appropriate response.
“We will defend our workers, we will defend our companies, we will defend our country, and we will defend it together,”
He stated in Kitchener, Ontario.
Canada and the EU have responded to the tariffs with their own measures. Canada imposed 25% retaliatory tariffs on US exports starting March 4, followed by an additional 25% tariff on more goods beginning March 23. Meanwhile, the EU also announced retaliatory tariffs targeting steel and aluminum imports from the US, which are scheduled to be implemented on April 13.
