Trump warns EU and Canada of heavier tariffs amid trade tensions
PTC Web Desk: US President Donald Trump has threatened to impose additional tariffs on the European Union and Canada if the two allies collaborate in ways that, according to him, could harm the American economy. The warning was issued through a late-night post on Trump’s Truth Social platform, as reported by AFP.
In his post, Donald Trump stated, "If the European Union works with Canada to do economic harm to the USA, large-scale tariffs, far bigger than currently planned, will be imposed on them both to protect the best friend that each of those two countries has ever had!"
The statement follows Donald Trump's recent announcement of 25% tariffs on automobile imports and parts, a move that triggered immediate backlash from global trade partners and rattled financial markets. The new tariffs are scheduled to take effect from April 3 at 12.01 am (0401 GMT) and will impact foreign-manufactured cars, light trucks, and key auto parts within the month.
The announcement caused significant disruptions on Wall Street, with stocks tumbling ahead of the tariff declaration. Major automaker Toyota saw its shares drop by over three percent. Tesla CEO Elon Musk, considered a Trump ally, also expressed concern, pointing out the negative financial impact on his company. "This will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial," Musk posted on X.
Reports further suggest that Donald Trump is exploring the possibility of sector-specific tariffs targeting industries like pharmaceuticals, semiconductors, and lumber. These measures are part of a broader trade strategy that Trump has tied to what he has called "Liberation Day" for the US economy, set for April 2.
- With inputs from agencies
