Trump hints EU could face tariffs after Mexico, Canada, and China

US President Donald Trump warned that the European Union (EU) could soon face tariffs, following his recent imposition of levies on Mexico, Canada, and China, which have sparked retaliatory measures from these countries.

Trump’s remarks came as he also softened his stance on the UK, expressing confidence that trade issues with Prime Minister Keir Starmer could be resolved.

However, the President made it clear that his administration’s tariff actions were aimed at rectifying what he views as unfair trade practices.

“We’re definitely going to impose tariffs on the EU, I can tell you that,” Trump said, adding that the move was in response to the large trade deficit between the US and Europe. He called for Europe to buy more American cars and agricultural products.

Trump’s tariff threat follows his decision to impose a 25% levy on imports from Canada and Mexico, alongside a 10% tariff on Chinese goods.

These actions have already prompted retaliatory tariffs from both Canada and Mexico. Mexico is expected to announce details of its countermeasures soon, while Canada has already published a list of U.S. products set to be hit with a 25% tariff beginning Tuesday.

The tariffs have sparked concerns about a potential global trade war, with critics warning of the economic fallout for American consumers and businesses.

The US stock market and Asian shares have shown signs of unease, while some industry groups have voiced concerns over the potential impact on costs.

In Canada, Prime Minister Justin Trudeau expressed the country’s commitment to defending its economic interests, stating, "We are not looking to escalate but will stand up for Canada." Canadian officials are pursuing legal action against Trump’s tariffs, arguing that the levies violate international trade agreements.

China, meanwhile, has threatened to file a lawsuit with the World Trade Organization, accusing the US of violating trade rules. The Chinese government has vowed to take countermeasures to safeguard its economic interests.

While the US president acknowledges that these tariffs may cause short-term pain, he defended them as necessary to address what he perceives as unfair trade practices, claiming the US has been "ripped off" by many countries.

Trump’s ongoing tariff strategy has added fuel to the simmering trade tensions, with the EU, Mexico, Canada, and China all preparing to retaliate in varying ways. The situation remains fluid, with global markets and governments closely monitoring the unfolding trade dispute.