President Donald Trump issued a pointed warning early Thursday, threatening significantly higher tariffs on both the European Union and Canada if the two allies coordinate in ways that he believes would damage the U.S. economy.
The message, posted on Trump’s Truth Social platform, came less than 24 hours after the administration’s announcement of a 25% blanket tariff on all imported automobiles. “If the European Union works with Canada in order to do economic harm to the USA,” Trump wrote, “large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of these countries has ever had!”
The threat signals a sharp escalation in an already volatile trade environment, with the president doubling down on his tariff-first approach to economic policy.
Trump has repeatedly framed tariffs as both a tool to penalize foreign competition and a mechanism to raise domestic revenue — funds he has indicated would help offset the cost of expanded tax cuts and boost U.S. manufacturing.
The European Automobile Manufacturers’ Association (ACEA) swiftly responded, warning of serious repercussions. “European automakers have been investing in the U.S. for decades,” said ACEA Director General Sigrid de Vries. “These actions risk undermining jobs, supply chains, and economic growth on both sides of the Atlantic.”
The president’s new auto tariff announcement follows an earlier move imposing 25% duties on imported steel and aluminum — a decision that triggered immediate countermeasures.
Canada, the largest foreign supplier of those metals to the U.S., announced $21 billion in retaliatory tariffs. The European Union soon followed with its own $28 billion package targeting American exports.
Trump’s latest statement appears to be a direct response to signals from Ottawa and Brussels suggesting a coordinated trade strategy. While neither government has formally confirmed such collaboration, the administration has indicated that any hint of economic alignment designed to offset U.S. tariffs will be treated as a provocation.
The threatened tariffs would add further strain to relations with longstanding U.S. allies. Both the EU and Canada have argued that their trade practices comply with international standards and that retaliatory measures are a proportionate response to Trump’s aggressive use of tariffs.
