US President Donald Trump has threatened to impose significantly higher tariffs on the European Union and Canada if they act together to “do economic harm” to the United States.
In a post on Truth Social on Thursday, Trump said: “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!”
The comments followed Trump’s announcement on Wednesday of a 25% tariff on all cars not made in the US. The measure, which he has referred to as part of “Liberation Day,” is due to take effect on 2 April and applies to foreign-made cars and light trucks, as well as auto parts — including engines, transmissions and electronic components — which are set to be covered from May.
Will Scharf, a Trump White House aide, estimated the new duties would raise “over $100 billion of new annual revenue.” He said the tariffs were designed to protect domestic manufacturing and would apply broadly across major US trading partners including Canada, Germany, South Korea, Japan, and Mexico.
Trump has already introduced tariffs on steel, aluminium and a wide range of imports from countries including Mexico, China and Canada, citing unfair trade deficits and lost US manufacturing capacity.
Global markets reacted sharply, with shares in US and Asian automakers falling and European manufacturers expected to follow. Economists have warned the move is likely to be inflationary and could raise the average price of a car in the US by $5,000 to $10,000 depending on model, according to Wedbush Securities.
European Commission President Ursula von der Leyen said the EU “will continue to seek negotiated solutions, while safeguarding its economic interests.” A Commission spokesperson confirmed the bloc was preparing a response but had not yet announced timing.
Canadian Prime Minister Mark Carney described Trump’s move as “a direct attack” and said he would convene a cabinet meeting to determine Canada’s response. “We will defend our workers, we will defend our companies, we will defend our country, and we will defend it together,” he said.
The European Automobile Manufacturers’ Association said it was “deeply concerned” by the new tariffs, calling the announcement a major setback at a time of intense global competition and industry transformation.
Trump has suggested he may hold a press conference next week to outline more details of the reciprocal tariffs, saying countries “will be pleasantly surprised” at how “fair” the duties will be — but also warned that any efforts to work against the US would invite steeper penalties.
