this post was submitted on 27 Mar 2025
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Economics

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Trump threatens 'far larger' tariffs if EU and Canada unite to do 'economic harm' to the U.S. (www.cnbc.com)
submitted 1 week ago* (last edited 1 week ago) by [email protected] to c/[email protected]
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Summary

Trump threatened "far larger" tariffs on the EU and Canada if they unite to harm the U.S. after announcing a 25% tariff on foreign-made cars and parts, effective April 2 and May respectively.

The tariffs aim to boost U.S. car production but may inflate prices by $5k-$10k per vehicle, harming both U.S. and foreign automakers.

Canada condemned the move as a "direct attack," while the EU signaled potential retaliation.

Global markets reacted negatively, with car stocks dropping amid fears of escalating trade tensions.

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[–] [email protected] 5 points 1 week ago* (last edited 1 week ago)

Let's be real, whether or not he increases tariffs or not, Canada & the European Union can't afford to buckle to negotiation bluffs. He wants to have his cake and eat theirs too, there's no disadvantage to unity at this point, given that he likely wouldn't honour any concessions granted by the United States. CANZUK is likely inevitable, strictly as a matter of economic and trade stability.