After Canada, EU slam new imported auto tariff, Donald Trump warns them of ‘working against’ US

Trump threatened Canada and the European Union with "large scale tariffs, far larger than currently planned" if they work together to cause "economic harm" to the United States, news agency AFP reported. This comes after EU, Canada slammed Trump's latest move of imposing 25% tariffs on imported autos.

“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 Truth Social. The euro briefly pared a small gain and the Canadian dollar fell.

Trump's remark comes after Canadian Prime Minister Mark Carney's France and the UK visits last week, which was his first foreign trip to pitch a closer alliance with European allies. “I want to ensure that France and the whole of Europe works enthusiastically with Canada, the most European of non-European countries,” Carney stated in Paris.

According to Bloomberg, The EU is considering countermeasures in response, while France has sought the European Commission to ponder on using its toughest trade weapon — the anti-coercion instrument – for the first time. The report said other industry-specific tariffs are also in pipeline, comprising on lumber, semiconductors and pharmaceutical drugs.

Canada and EU respond to Trump's 25% imported auto tariffs

Canada strongly objected Trump's announcement, with PM Carney saying, "We will defend our workers. We will defend our companies. We will defend our country. Canada will be there for auto workers. He (Trump) wants to break us so America can own us. And it will never ever happen because we just don’t look out for ourselves; we look out for each other. The relationship between Canada and the United States has changed. We did not change it.

Whereas, European Commission President Ursula von der Leyen criticised the Trump's latest move and cautioned it could escalate trade tensions. According to reports, she said, “I deeply regret the US decision to impose tariffs on European automative exports.” EU will demand negotiated solutions while safeguarding its economic interests, she said. “As a major trading power and a strong community of 27 Member States, we will jointly protect our workers, businesses and consumers across our European Union,” Von der Leyen added.

According to the White House, the move will strengthen domestic manufacturing. Trump said, “This will continue to spur growth. We'll effectively be charging a 25 per cent tariff.”

(With inputs from AP and Bloomberg)