Washington, D.C. – U.S. President Donald Trump has warned that significantly larger tariffs could be imposed on the European Union and Canada if they collaborate to harm the American economy.
His remarks, shared on Truth Social, come as he expands his trade war by announcing a new 25% tariff on imported vehicles.
“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 wrote.
New Auto Tariffs Spark Global Backlash
The newly announced tariffs, set to take effect on April 3, will apply to imported cars and light trucks. This move, part of Trump’s broader protectionist agenda, follows previous tariffs on steel, aluminum, and goods from Mexico, Canada, and China.
In 2024, the U.S. imported $474 billion worth of automotive products, with passenger cars accounting for $220 billion. Canada, Mexico, Germany, Japan, and South Korea are the largest suppliers and stand to be significantly affected by the new tariffs.
Global Leaders Condemn the Move
European Commission President Ursula von der Leyen criticized the decision, calling it “bad for businesses, worse for consumers.” Canadian Prime Minister Mark Carney described the tariffs as a “direct attack” on Canadian workers and vowed to retaliate.
“We will defend our workers, we will defend our companies, we will defend our country, and we will defend it together,” Carney said in Ottawa.
Japanese Prime Minister Shigeru Ishiba hinted at countermeasures, saying Tokyo would consider “all options” in response, while South Korea announced an emergency response plan for its auto industry.
Economic Concerns and Market Reactions
The automotive sector reacted sharply to the news, with shares of Toyota, Mazda, Hyundai, and Kia falling significantly. Industry analysts warn that the tariffs could disrupt global supply chains and increase costs for consumers.
Brazilian President Luiz Inácio Lula da Silva also weighed in, cautioning that protectionist policies could damage the U.S. economy.
He pledged to file a complaint with the World Trade Organization over tariffs on Brazilian steel.
Trump’s Justification and Future Trade Plans
Trump defended his tariff strategy as a means to protect American jobs and industries, arguing that other nations have taken advantage of the U.S. for years.
“We’re going to charge countries for doing business in our country and taking our jobs, taking our wealth,” he stated from the Oval Office. He also confirmed plans to introduce reciprocal tariffs on April 2, targeting nations responsible for the U.S. trade deficit.
Despite Trump’s claims, trade experts predict that the tariffs could raise prices for U.S. consumers and lead to a drop in demand, further straining an already uncertain global economy.
As tensions escalate, the coming weeks will determine whether Trump’s aggressive trade policies will achieve their intended effects or lead to a full-scale economic confrontation with key U.S. allies.
