Trump warns EU, Canada of higher tariffs; imposes 25% auto import tax

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Posted by NewAdmin on 2025-03-27 08:46:52 |

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Former US President Donald Trump has warned the European Union and Canada of severe economic consequences if they attempt to harm the US economy. In a late-night post on his Truth Social platform, Trump stated that “large-scale tariffs far larger than currently planned” would be imposed on these nations. He emphasized that the US has been a strong ally to both regions, and any economic actions against the country would be met with a forceful response.  

As part of his new trade policies, Trump announced a 25 percent tariff on all imported automobiles. The White House confirmed that these tariffs would come into effect on April 2, with collections starting the following day. Trump asserted that this move was aimed at stimulating economic growth and encouraging companies to manufacture vehicles within the US. He explained that the existing tariff of 2.5 percent on imported automobiles would be significantly increased to 25 percent. According to him, the measure is designed to protect American industries, reduce dependence on foreign imports, and create jobs. He insisted that vehicles manufactured in the US would not be subject to the tariff, thereby incentivizing companies to set up production facilities within the country.  

The announcement comes ahead of a broader trade policy rollout scheduled for April 2, which Trump has termed "Liberation Day." On this day, he is expected to introduce additional tariffs on imported goods that his administration claims have been unfairly taxed by US trading partners. The idea of a 25 percent tariff on imported automobiles had been floated by Trump in February, though he had not provided specific details at the time. However, he recently hinted that these tariffs would be implemented soon, and the announcement confirms the administration’s intent to push forward with this policy.  

Tesla CEO Elon Musk, who has previously expressed support for Trump, voiced concerns about the impact of the tariffs. In a post on X, Musk stated that Tesla would not be unaffected by the policy and that the new tariffs could have significant financial implications for his company. His comments highlight the broader concerns within the US automotive industry about potential disruptions and increased costs due to the tariff hike.  

Additionally, Trump indicated that he might consider reducing tariffs on China to facilitate a potential deal involving the Chinese-owned social media platform TikTok. He mentioned that China might need to approve certain aspects of the agreement and suggested that a minor tariff reduction could be offered in exchange. He also hinted at the possibility of extending the deadline for finalizing the deal if necessary.  

These trade policy shifts mark a continuation of Trump’s aggressive stance on international trade, a hallmark of his presidency. While his supporters argue that these measures will strengthen the US economy and manufacturing sector, critics warn of potential retaliation from trading partners, which could escalate into trade conflicts affecting global markets.

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