Trump Issues Warning of Additional Tariffs as EU and Canada Respond to Current Measures

As the EU and Canada respond to trade restrictions that have already been put in place, Trump has threatened to levy more tariffs.

As significant US trading partners launched retaliatory actions against his current trade barriers, US President Donald Trump vowed on Wednesday to intensify a global trade war by enacting more taxes on goods from the European Union.

Trump threatened more sanctions if the EU implements its plan to apply counter-tariffs on a few US commodities next month, just hours after he imposed 25% tariffs on all US imports of steel and aluminum. Trump told reporters at the White House, “We’re charging them whatever they charge us.”

Businesses, consumers, and investors have been uneasy due to Trump’s hardline trade policy, which has increased concerns about a potential economic slowdown. Because of his repeated comments about annexing the neighboring country, his actions have also damaged relations with Canada, a crucial ally and trading partner.

In addition to taxes on laptops, sports equipment, and other items valued at $20 billion, Canada, the US’s biggest foreign supplier of steel and aluminum, announced 25% retaliatory duties on those metals. The nation had already responded to Trump’s more extensive trade restrictions with tariffs of a comparable amount.

Dominic LeBlanc, Canada’s finance minister, declared, “We will not tolerate the unfair targeting of our iconic steel and aluminum industries.” In an effort to lessen any economic consequences, Canada’s central bank also reduced interest rates.

All imports of steel and aluminum, along with hundreds of associated goods including soda cans, bulldozer blades, and nuts and bolts, are subject to 25% tariffs under Trump’s trade restrictions. According to US Commerce Secretary Howard Lutnick, Trump will also implement copper trade barriers.

The European Union, which is less vulnerable to US trade restrictions, intends to impose counter-tariffs on up to $28 billion worth of American products, such as whiskey, diamonds, dental floss, and bathrobes. Germany’s Kiel Institute claims that the EU’s policies only impact a small portion of its exports to the US, but industry associations caution that the steps could have disastrous effects on industries like the liquor business.