Trump Vows Increased Tariffs on EU and Canada If They Harm the U.S.
President Donald Trump has warned that he will impose greater import tariffs on the European Union and Canada if they act in a way that damages the U.S. economy.
Key Points:
- President Donald Trump stated he would impose greater import tariffs on the European Union and Canada if they work together to harm the U.S. economy.
- Financial markets remain stable despite the threat, with Bitcoin prices stabilizing below $88,000 and Germany’s DAX futures down by 0.3%.
- This market stability likely reflects Federal Reserve Chairman Jerome Powell’s view that inflationary pressures from tariffs may be temporary.
President Donald Trump has threatened to increase import tariffs against the European Union (EU) and Canada if they collaborate to cause economic damage to the U.S. He emphasized, “If the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!” Trump said in a late evening post on Truth Social.
Financial markets showed resilience following this new threat, with BTC maintaining levels below $88,000. Meanwhile, Germany’s DAX futures fell by 0.3% while Wall Street indices remained stable or slightly positive.
The strong performance in markets could be attributed to Federal Reserve Chairman Jerome Powell’s recent statements indicating that any inflationary pressures arising from tariffs might be temporary.
