Trump warns EU, Canada: 'Large-scale tariffs' coming if US economy harmed

US President Donald Trump said that far larger than currently planned tariffs will be placed on Canada and the European Union if they work together to combat trade tariffs

US President Donald Trump issued a stern warning on Wednesday, threatening to impose even steeper tariffs on the European Union and Canada if they collaborate to harm the US economy, according to news agency AFP.

 

In a late-night post on his Truth Social platform, Trump declared that “large-scale tariffs far larger than currently planned” would be levied on these nations.

 

“If the European Union works with Canada to do economic harm to the USA, large-scale tariffs, far larger than currently planned, will be placed on them both to protect the best friend that each of those two countries has ever had!” he said.

 

New 25% auto tariffs announced

In a significant shift in US trade policy, President Trump announced a 25 per cent tariff on all imported automobiles. The White House confirmed that the tariffs will take effect on April 2, with collections beginning the following day, April 3.  

 

“This will be permanent,” Trump declared from the Oval Office. “We start off with a 2.5 per cent base, which is what we’re at, and go to 25 per cent.”  

 

Emphasising the economic benefits of the move, Trump said the tariffs would fuel economic growth in the US. “This will continue to spur growth like you haven’t seen before. But if you build your car in the United States, there is no tariff,” Trump said.  

 

The announcement comes just ahead of a broader trade policy rollout scheduled for April 2, a date Trump has branded as ‘Liberation Day’. On this day, he is expected to introduce a series of reciprocal tariffs aimed at imported goods that his administration argues are unfairly taxed by US trading partners.  

 

Trump had initially floated the idea of a 25 per cent tariff on imported vehicles in February, though he did not provide specifics at the time. However, on Monday, he hinted that the new levies on the auto industry would be implemented “in the very near future”. 

 

Elon Musk expresses concern

Even Tesla CEO Elon Musk, a known Trump ally, expressed concern about the move, highlighting the financial implications for his company.

 

In a post on X, he said, “Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.”

 

Possible tariff reduction for China

President Trump suggested on Wednesday that he may consider a slight reduction in tariffs on China to facilitate a deal involving the Chinese-owned social media platform TikTok. He also indicated that he would likely extend the deadline for reaching an agreement if necessary.  

 

“With respect to TikTok, and China is going to have to play a role in that, possibly in the form of an approval, maybe, and I think they’ll do that. Maybe I’ll give them a little reduction in tariffs or something to get it done,” Trump told reporters.  

 

[With agency inputs]