Trump Threatens EU and UK with New Tariffs as Retaliation from Canada, Mexico, and China Escalates
Donald Trump has threatened to expand his trade tariffs, reiterating that the European Union—and potentially the UK—will face new levies, despite acknowledging that Americans might experience some economic fallout from a growing global trade conflict.
Trump’s latest tariffs, imposed on Mexico, Canada, and China, have already sparked retaliatory measures from all three nations. Mexico and Canada have pledged to introduce their own tariffs, while China and Canada are exploring legal challenges to the new measures.
Speaking on Sunday, Trump stated that additional tariffs on the EU were inevitable, once again highlighting his concerns over the large trade deficit with Europe and his desire for the bloc to import more U.S. cars and agricultural products. “It will definitely happen with the European Union, I can tell you that,” he told reporters, adding that while there was no specific timeline, the tariffs would come soon.
However, Trump appeared to adopt a more conciliatory tone towards the UK, acknowledging his good relationship with Prime Minister Keir Starmer. While he mentioned that tariffs could still be imposed, he expressed optimism that a resolution could be reached. “The UK is out of line but I’m sure that one can be worked out,” he said, emphasizing his positive relationship with Starmer and ongoing discussions.
The European Commission responded firmly to Trump’s threat, stating that the EU would take action against any trade partner imposing tariffs on its goods in an unfair or arbitrary manner. In previous years, the EU retaliated against U.S. tariffs by targeting iconic American products such as Harley-Davidson motorcycles, bourbon, and orange juice, particularly those produced in states that support Trump.
In a statement, the European Commission condemned the new tariffs on Canada, Mexico, and China, warning that tariffs disrupt economies and increase inflation, which harms all parties involved.
Canada has already published a list of U.S. imports that will be hit with a 25% retaliatory tariff starting Tuesday, covering products worth around $20 billion U.S. These include tobacco, produce, household appliances, firearms, and military equipment. Canada also plans a second, broader round of tariffs in 21 days, targeting another $86 billion worth of U.S. goods, such as vehicles, steel, and agricultural products.
Mexican President Claudia Sheinbaum, responding to Trump’s tariffs, said her government would unveil further details of its retaliation plan on Monday. She emphasized that Mexico does not seek confrontation but insists that sovereignty must be respected, advocating for dialogue over tariffs.
Sheinbaum and Canadian Prime Minister Justin Trudeau spoke by phone on Saturday to discuss the situation, with Trudeau’s office stating that both countries are committed to strengthening their bilateral ties. Trudeau also encouraged Canadians to support domestic products, urging them to “choose Canada” whenever possible.
Trump acknowledged that the tariffs could cause some “short-term” pain for Americans, as global markets reacted negatively to the news, with concerns that the measures could stifle growth and reignite inflation. Stock markets in Asia, cryptocurrencies, and U.S. and European futures all dropped in early trading on Monday. “We may have short term some little pain, and people understand that. But long term, the United States has been ripped off by virtually every country in the world,” he remarked.
