Trump Threatens More Tariffs as Trade War with EU and Canada Escalates
Donald Trump has doubled down on his tariff strategy, threatening more trade penalties against the European Union and Canada after both imposed retaliatory measures on U.S. goods. The president's 25% tariffs on all steel and aluminum imports took effect Wednesday, prompting a swift pushback from the EU and Canada, who announced their own tariffs on billions of dollars’ worth of American products. "Whatever they charge us, we're charging them," Trump declared, insisting he would reveal further "reciprocal" tariffs next month.
Canada, the U.S.'s top supplier of steel and aluminum, has hit back with 25% tariffs on a range of American goods worth nearly $30 billion, including sports equipment and electronics. Prime Minister-designate Mark Carney signaled a willingness to negotiate a new trade deal but emphasized the need for "respect for Canadian sovereignty." Meanwhile, the EU has targeted up to $28 billion in American exports, including bourbon and motorcycles. European Commission President Ursula von der Leyen criticized the tariffs, warning they would "burden our economies" and harm consumers.
The growing trade war has rattled financial markets and businesses, with concerns about rising costs and potential job losses. While Trump claims the tariffs will boost U.S. steel and aluminum production, critics argue they will drive up prices and slow economic growth. Global stocks have been volatile, and major food brands, including PepsiCo and Quaker Oats, have urged the administration to exempt certain imports. At a White House meeting with Irish Prime Minister Micheál Martin, Trump made it clear he would not back down, reiterating his frustration with EU trade policies and vowing, "We're going to win that financial battle."
