Donald Trump threatens more tariffs on Canada, EU if they work ‘to do economic harm’ to US
US President Donald Trump warned on Thursday that the European Union and Canada could face additional tariffs if they act together to undermine the American economy.
“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!” Trump posted on his TruthSocial network.
25% tariffs on auto imports
On Thursday morning, Donald Trump announced a 25 per cent tariff on auto imports, a move the White House claims will boost domestic manufacturing but could put financial pressure on automakers dependent on global supply chains.
“This will continue to spur growth. We’ll effectively be charging a 25 per cent tariff,” Trump told reporters.
The White House expects the measure to generate USD 100 billion in annual revenue. However, industry experts warn that the tax hike could increase production costs and reduce sales. Trump, however, maintains that the policy will bring more factories to the US and eliminate the “ridiculous” supply chain that involves manufacturing across the US, Canada, and Mexico.
To emphasise the permanence of his decision, Trump stated, “This is permanent.”
The announcement impacted major automakers. Shares of General Motors fell by nearly 3 per cent on Wednesday, while Stellantis, the parent company of Jeep and Chrysler, saw a 3.6 per cent drop. Ford’s stock, however, recorded a slight increase.
Trump has long advocated tariffs on auto imports, arguing that they will incentivize companies to relocate production to the US and reduce the budget deficit. However, industry analysts caution that shifting production could take years, affecting both pricing and availability.
Economists predict that the tariffs will lead to higher vehicle prices and limited consumer choice. Mary Lovely, a senior fellow at the Peterson Institute for International Economics, warned that middle- and working-class families would bear the brunt of the policy.
“We’re looking at much higher vehicle prices,” Lovely said. “We’re going to see reduced choice. These kinds of taxes fall more heavily on the middle and working class.”
She added that with new car prices already averaging around USD 49,000, more households may be forced to hold onto older vehicles instead of purchasing new ones.
