Donald Trump has reaffirmed his intention to impose tariffs on the European Union, stating that such measures will “definitely happen.” While he did not specify a timeline, he reiterated concerns about the U.S. trade deficit with the EU and expressed a desire for increased European imports of American goods, including cars and agricultural products. Trump also suggested that the UK could be subject to tariffs but indicated that a resolution might be possible due to his positive relationship with Prime Minister Keir Starmer.

The announcement comes amid growing trade tensions, as Mexico, Canada, and China have already retaliated against U.S. tariffs imposed on Saturday. Both Canada and China have announced legal challenges, while Mexico’s government is preparing countermeasures, with details expected to be released on Monday. Canada’s finance ministry has outlined a two-phase response, with an initial round of 25% tariffs on U.S. goods, including tobacco, household appliances, and firearms, followed by a broader set of measures in three weeks targeting products such as vehicles, steel, aluminum, and agricultural goods.

Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum have held discussions on their response to the U.S. tariffs. Trudeau has emphasized the importance of choosing Canadian-made products and reaffirmed that Canada will take all legal avenues available under international trade agreements to challenge the tariffs. Sheinbaum, while insisting that Mexico does not seek confrontation, stated that national sovereignty is non-negotiable and that tariffs are not a solution to trade disputes.

China, meanwhile, has also condemned the U.S. measures, with its commerce ministry stating that the tariffs violate World Trade Organization rules and urging Washington to engage in dialogue instead. While Beijing has not yet detailed its countermeasures, officials have indicated that they will take action to protect China's interests.

Trump has acknowledged that the tariffs may cause short-term economic pain for Americans, as global markets have already reacted with declines in stock futures, cryptocurrencies, and Asian markets. However, he defended his approach by arguing that the U.S. has long been “ripped off” by other countries and that his administration is addressing trade imbalances.

In response to Trump's latest statements, European leaders have warned that any tariffs imposed on EU goods will be met with firm retaliation. The European Commission expressed regret over the U.S. decision to target Canada, Mexico, and China and stressed that tariffs create unnecessary economic disruptions and inflation. A spokesperson for the Commission emphasized that the EU will not hesitate to take countermeasures if subjected to unfair trade restrictions.

French Industry Minister Marc Ferracci has called for a strong response, suggesting that countermeasures should focus on products crucial to the U.S. economy to exert pressure in negotiations. He also urged Brussels to consider a “Buy European Act” to strengthen the bloc’s position. German Chancellor Olaf Scholz, while emphasizing the benefits of open trade, noted that the EU is an economic powerhouse with its own means of responding to protectionist measures.

Other European leaders have taken a cautious approach. Italian Foreign Minister Antonio Tajani warned against a tariff war, stating that it would benefit no one, while German Finance Minister Jörg Kukies advised against overreacting to the initial U.S. actions. Meanwhile, European Parliament trade committee chair Bernd Lange accused Trump’s tariffs of violating international trade law and called on the EU to act decisively to defend its economic interests.

Public sentiment in Canada and Mexico has also reflected frustration with Trump's trade policies. Canadian hockey and basketball fans have booed the U.S. national anthem at games, while on social media, individuals are encouraging the boycott of American products. In Mexico, concerns are growing about potential job losses if U.S. companies relocate operations due to higher tariffs.

Trump has stated that he will hold discussions with Trudeau and Mexican officials in the coming days, though it is unclear whether he will speak directly with Sheinbaum. While tensions continue to escalate, responses from global leaders indicate that the U.S. tariffs could mark the beginning of a protracted trade dispute.

Sources:

• The Guardian
• Politico