In another episode on tariff threats, President Donald Trump has announced plans to impose sweeping 25% tariffs on goods from the European Union. This move comes on the heels on the pending levies on Canada that will begin on March 4 “pending ongoing negotiations.”
The hardline trade policy stance has sparked immediate vows of retaliation from European leaders and stoked fresh uncertainty about North American trade.
The latest escalation stems from Trump’s claim that the 27-member European bloc was “formed to screw the United States.” Speaking at his first cabinet meeting in weeks, he declared that new tariffs “will be announced very soon” and that “it’ll be 25 percent… on cars and all of the things.” He singled out EU trade barriers, arguing that European countries “don’t accept our cars” and treat imports “in order to take advantage of us.”
The EU swiftly vowed to respond “firmly and immediately” to what it calls “unjustified trade barriers.” A spokesperson for the European Commission indicated that Europe “will always protect European businesses, workers and consumers from unjustified tariffs,” adding an emphasis on keeping Europe’s single market the world’s largest free trade zone and that any US measures that will threaten that would be met in kind.
The threat of tariffs arrives as transatlantic tensions have been festering over a range of issues, including automobile market access. Major US carmakers such as General Motors and Ford could see production strategies shift if European retaliatory measures affect supply chains.
Tariffs on Canada
The EU tariff threat continues Trump’s rhetoric on unfair global trade practices. In North America, Canada and Mexico are looking at steep 25% duties tied to a mix of border security and what Trump describes as “fentanyl-related” concerns. Although the White House initially signaled these tariffs would come into force on March 4, Trump told reporters on Wednesday they could take effect on April 2, saying he delayed them by a day because he is “a little bit superstitious.” This about-face temporarily rattled currency markets, prompting the Canadian dollar and Mexican peso to strengthen amid hopes of another reprieve.
Moments later, however, a White House official walked back Trump’s suggestion of an April 2 deadline, stating that “the March 4 date still holds as of this moment, pending ongoing negotiations.”
Commerce Secretary Howard Lutnick described the Canada and Mexico tariffs as “fentanyl-related,” explaining that both countries must “prove to the president that they’ve satisfied him in that regard” by early March—or face penalties. Trump interjected that it would be “hard to satisfy” him, referencing statistics on fentanyl trafficking, even though official U.S. data show seizures of the drug at the northern border are far lower than those on the US-Mexico border.
Canadian officials, including Innovation Minister François-Philippe Champagne, have urged caution, saying they plan to wait for “signed executive orders” from the White House before taking any retaliatory steps. For now, Canada holds a 30-day reprieve that Prime Minister Justin Trudeau negotiated with Trump, but officials warn that if tariffs do go into effect, Ottawa is prepared to respond with a massive counter-tariff package totaling $155 billions.
Former Bank of Canada governor Stephen Poloz estimated that the impact of a sweeping 25% tariff on Canadian goods would be akin to a “permanent five percent pay cut” for the country’s entire economy.
Many warn that, should tariffs intensify across multiple fronts, it could disrupt global supply chains—particularly for autos, aerospace, agricultural products, and semiconductors. Trump, though, appears undeterred by these risks and maintains that the US has been taken for granted by its partners.
“The tariffs will drive massive amounts of auto manufacturing to MICHIGAN,” he wrote, insisting they will boost US jobs even as he acknowledges the possibility of retaliatory damage.
Information for this briefing was found via Reuters, The Guardian, CP24, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
He couldn’t give a rat’s a** about Fentanyl at the Canadian border. He just likes destabilizing the Canadian economy. Fortunately, Canada will retaliate and is the most resilient country he has never noticed except for it’s resources. Knowing nothing really about global economics, Europe will stick it to him as well, as he now whines about being “unfairly treated” like some kind of over-priviledged child. Just wait.