After 25% auto import levy, Donald Trump warns EU, Canada of steeper tariffs if...

US President Donald Trump on Thursday warned of imposing larger tariffs on the European Union and Canada if they collaborate to "do economic harm" to the United States.  

Taking to his social media platform Truth Social, Trump wrote, "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."

This statement comes a day after Trump announced a 25 per cent tariff on imported vehicles, escalating an already tense global trade war. The move has drawn sharp criticism from affected US allies, with European Commission President Ursula von der Leyen calling it “bad for businesses, worse for consumers,” while Canadian Prime Minister Mark Carney termed it a “direct attack” on Canadian workers.  

The new tariffs, set to take effect on April 3, will apply to cars and light trucks, adding to existing duties on steel, aluminum, and goods from Mexico, Canada, and China. In response, the EU has threatened counter-measures, including a 50 per cent tariff on US bourbon by mid-April. Trump has retaliated by threatening a 200 per cent  tariff on European wines and other alcoholic products.  

US-EU trade tensions escalate  

The European Commission has strongly pushed back against Trump’s tariff threats, with President Ursula von der Leyen stating that 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 said in a statement on X.

Brussels has announced that it will delay its first set of counter-measures until mid-April, including a 50 per cent tariff on US bourbon. In response, Trump threatened a 200 per cent tariff on all European wines and alcoholic beverages if the EU follows through with its retaliatory measures.  

Trump also accused the EU of being designed to exploit the US, saying, “the European Union was formed in order to screw the United States. That’s the purpose of it, and they’ve done a good job of it,” His remarks have further deepened the transatlantic divide, already strained over trade disputes and NATO funding concerns.  

US-Canada trade war

Canadian Prime Minister Mark Carney has slammed Trump’s decision, calling the 25 per cent auto tariff a “direct attack” on Canadian workers and businesses. Carney has convened a high-level cabinet meeting to discuss Canada’s response. He also announced a CA$2 billion ($1.4 billion) “strategic response fund” to protect Canadian auto sector jobs impacted by the tariffs.  

While Carney is waiting to review the details of Trump’s executive order before announcing countermeasures, he has emphasised that Canada will “defend its workers, its companies, and its country.” 

(With inputs from agecies)