U.S. President Donald Trump has been threatening to raise tariffs on the EU and Canada much, much higher than the current rates. This announcement comes at a time of further deteriorating global trade relations, including recently announced tariffs on foreign-built automobiles and light trucks. The announcement made on Thursday promises over $100 billion of new annual revenue for the U.S. economy but has roiled global markets.
After Trump’s announcement, stocks for American and Asian automakers fell sharply. Market analysts are expecting European auto manufacturers to do the same when their markets open on Thursday. Even through the chaos, the EU and Canada remained silent. They’ve never signaled any willingness to unite and punish the U.S. economically.
Now Trump is sharing his complaints on Truth Social. He expressed concern over a potential EU-Canada alliance to undermine and punish U.S. opposition to CETA.
“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!” – U.S. President Donald Trump
The European Union has already threatened to retaliate against the new tariffs. It is resolved to protect its economic interests at all costs, and will go after fully negotiated solutions. They have yet to publicly commit to working with Canada to stand up to the U.S.
“Tariffs are taxes — bad for businesses, worse for consumers equally in the U.S. and the European Union.” – European Commission President Ursula von der Leyen
In much the same way, Canada has not released any call of solidarity with the EU to stand up to the U.S. Despite those moves, Canadian officials have signaled they might be able to match U.S.
“We will defend our workers, we will defend our companies, we will defend our country, and we will defend it together.” – Canada’s new Prime Minister Mark Carney
The announcement marks another chapter in the ongoing global trade conflict, opening yet another front that could potentially affect international trade relations. Both the European Union and Canada are considering their next steps as they strategize on how to best respond to these developments.