Trump Warns of ‘Significant Tariffs’ if Canada and EU Join Forces in Trade Retaliation against US

March 27, 2025 TruthUSA

U.S. President Donald Trump states that his administration is prepared to implement even larger tariffs on both Canada and the European Union if they collaborate on a joint response against U.S. tariffs.

“If the European Union collaborates with Canada to inflict economic harm on the USA, large-scale Tariffs, significantly larger than those currently planned, will be imposed on both countries to safeguard the greatest ally each has ever had!” Trump stated on his social network platform Truth Social on March 26.

Canada and the EU have not yet announced a joint response to Trump’s tariffs, but both have indicated separately that they will retaliate. The two have discussed potential collaboration in areas such as defense procurement, with Ottawa looking to diversify its trade with Europe and Asia to decrease reliance on the U.S.

Trump declared 25 percent tariffs on all imported cars and select car parts on March 26. These tariffs will cover passenger vehicles, light trucks, and essential automobile components like engines, transmissions, and electrical parts, as outlined in a fact sheet from the White House. There is a possibility of expanding tariffs to additional components in the future.

Under the United States-Mexico-Canada free trade agreement, importers of automobiles will have the option to certify their U.S. content, allowing the 25 percent tariffs to apply solely to the value of non-U.S. content, as stated in the fact sheet. Parts compliant with the agreement will remain free of tariffs until a process is established for applying tariffs to their non-U.S. content.

Automobile tariffs are slated to come into effect on April 3, following reciprocal tariffs imposed by the U.S. on its trading partners, while the tax on auto parts will initiate by May 3.

Liberal Leader Mark Carney condemned the tariff announcement on March 26, labeling it a “direct attack” on Canadian workers and mentioning that Ottawa will explore retaliatory measures. Canada has already imposed CA$30 billion in tariffs on U.S. goods in response to previous 25 percent tariffs on Canadian products.

Carney stated that he intends to convene with his U.S.-Canada cabinet committee on March 27 to discuss a reaction to the tariffs and indicated that speaking with Trump soon would be “appropriate.”

Carney announced earlier on March 26 the establishment of a $2 billion Strategic Response Fund to bolster the Canadian auto manufacturing sector against U.S. tariffs.

Conservative Leader Pierre Poilievre responded to Trump’s auto tariffs by advocating for retaliatory tariffs targeting goods that Canada can produce domestically or source elsewhere and does not necessarily need.

“Now is the time to regain control and revitalize our economy so we can confront President Trump’s unjustified threats and tariffs from a position of strength,” he asserted.

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