The President of the United States, Donald Trump, has threatened to impose even higher tariffs on European Union goods, escalating fears of a global trade war. Meanwhile, major U.S. trade partners have declared their intention to respond to the trade barriers already set by the American president.
According to a report by Reuters, Trump stated that if the European Union proceeds with its plan to impose retaliatory tariffs on certain American goods next month, he will enforce additional penalties. 'What they charge us, we will collect from them,' he declared.
Widespread Frustration in the Business World
By heavily emphasizing tariffs, Trump has shaken the confidence of investors, consumers, and the business community, stoking fears of an impending recession. His frequent threats to annex neighboring countries have also deteriorated relations with Canada.
Canada's Response
In a determined move, Canada, America's largest foreign supplier of steel and aluminum, announced a 25% retaliatory tariff on these metals, along with computers, sports equipment, and other products, totaling a value of $20 billion. This comes as a response to President Trump's tariffs, as Canada had already imposed equivalent tariffs on American goods.
Canada's Finance Minister, Dominic Leblanc, emphasized, "We will not remain silent as our esteemed steel and aluminum industries are unfairly targeted."
Additionally, Canada's central bank has reduced interest rates to brace for the economic turbulence.
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Trump's measures to bolster U.S. steel and aluminum producers have resulted in a 25% tariff effectively reinstated on all imports, affecting hundreds of downstream products, from nuts and bolts to bulldozer blades and soda cans.
U.S. Commerce Secretary Howard Lutnick announced that Trump would extend trade protections to copper as well.
According to a Reuters survey, 57% of American citizens feel Trump is being too unpredictable in his efforts to shake up the U.S. economy, and 70% believe tariffs will make shopping more expensive.
