U.S. President Donald Trump has issued a warning regarding the potential implementation of significantly higher tariffs on the European Union and Canada if they collaborate to challenge U.S. trade tariffs.
In a post on the social media platform Truth Social on Thursday, Trump stated, “If the European Union collaborates with Canada to inflict economic damage on the USA, substantial tariffs, much larger than those currently proposed, will be imposed on both to safeguard the best ally that each of those nations has ever had!”
On the previous day, the President announced a forthcoming 25% tariff on “all cars not manufactured in the United States,” with these tariffs set to take effect on April 2.
Will Scharf, an aide in the Trump administration, clarified that these new tariffs would apply to “foreign-made cars and light trucks,” in addition to existing tariffs. He projected that these measures could generate “over $100 billion in new annual revenue” for the United States.
The announcement has unsettled global markets, marking a new escalation in the ongoing global trade conflict, as shares of U.S. and Asian automotive manufacturers declined, with European auto companies expected to follow suit when the market opens on Thursday.
Trump has already disrupted long-standing global trade relationships by imposing tariffs on imports from Mexico, Canada, and China, as well as on all steel and aluminum imports, citing perceived unfair trade deficits with several of the U.S.’s largest trading partners.
The European Union and Canada have not made any statements indicating a desire to collaborate against the United States, contrary to the implications of Trump’s post. However, both entities have indicated a willingness to respond to the recent measures imposed.
Ursula von der Leyen, President of the European Commission, stated that the EU “will continue to pursue negotiated solutions while protecting its economic interests.”
She emphasized that “Tariffs are taxes — detrimental to businesses and equally harmful to consumers in both the U.S. and the European Union.”
In Canada, Prime Minister Mark Carney characterized Trump’s actions as “a direct attack” and announced to reporters that he would hold a high-level cabinet meeting on Thursday to determine an appropriate response.
“We will protect our workers, our companies, and our country, and we will do so collectively,” he declared in Kitchener, Ontario, as reported by Reuters.
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