Trump warns of tougher tariffs on Europe and Canada if they harm US economy

US President Donald Trump has threatened to impose even harsher tariffs on the European Union and Canada if they cooperate to harm the United States economically.

"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 on Truth Social, per Caliber.Az.

Trump, who returned to the White House after losing the 2020 election largely due to voter concerns about rising prices, made this announcement as part of a broader reshaping of global relations. He plans to impose what he calls “reciprocal” taxes on April 2, matching tariffs charged by other nations.

He has already imposed a 20% import tax on all goods from China due to the country’s role in fentanyl production, and placed 25% tariffs on Mexico and Canada, along with a 10% tariff on Canadian energy products. Although parts of the Mexico and Canada tariffs have been suspended — specifically the car import taxes — this suspension is set to expire in April after a 30-day reprieve, which came after objections from various firms.

Additionally, Trump has enforced 25% tariffs on all steel and aluminum imports, removing the earlier 2018 exemptions on these metals. He has also announced plans for tariffs on computer chips, pharmaceutical drugs, lumber, and copper.

Trump’s moves risk sparking a broader global trade war, with retaliatory measures escalating and potentially crushing global trade. Such actions could damage economic growth and raise costs for families and businesses, as some of the tariffs' costs are passed on by importers.

In response to the European Union’s plan for a 50% tariff on US spirits, Trump retaliated by proposing a 200% tax on alcoholic beverages from the EU. Furthermore, he intends to place a 25% tariff on countries that import oil from Venezuela, even though the US itself imports oil from the same country.

Trump’s aides maintain that the tariffs on Canada and Mexico are part of efforts to combat illegal immigration and drug smuggling. However, the administration also aims to use the tariff revenues to lower the federal budget deficit and reinforce America’s position as the world’s largest economy.

By Tamilla Hasanova