President Donald Trump has escalated his trade war rhetoric, declaring that tariffs on the European Union will “definitely happen” in the wake of his recent imposition of duties on Canada, Mexico, and China. This latest development comes as part of the administration’s aggressive trade policy aimed at addressing what Trump perceives as unfair practices by major U.S. trading partners.
New Tariffs on Canada, Mexico, and China
On Saturday, February 1, 2025, the Trump administration implemented significant new tariffs on three of America’s largest trading partners:
- A 25% duty on imports from Canada and Mexico
- An additional 10% tariff on Chinese goods
These tariffs were announced by White House Press Secretary Karoline Leavitt, who emphasized that they were “promises made and promises kept by the president”. The administration cited concerns over illegal immigration and the influx of dangerous drugs, particularly fentanyl, as justification for these measures.
Potential EU Tariffs
In an interview with the BBC, President Trump indicated that tariffs on EU imports to the U.S. could be implemented “pretty soon”. He criticized the EU’s trade practices, stating:
“They don’t accept our cars, they don’t import our agricultural products, they take virtually nothing, while we take a multitude of their products. Millions of vehicles, enormous quantities of food and agricultural goods”.
International Response
The new tariffs have already prompted retaliatory measures from the affected countries:
- Canada has announced a 25% tariff on $155 billion CAD worth of American goods
- Mexico is expected to announce countermeasures soon
- China has indicated it will take “necessary countermeasures” and file a complaint with the World Trade Organization
The Trump administration argues that these measures aim to address issues like illegal immigration, drug trafficking, and unfair trade practices. The tariffs are expected to generate significant revenue, with estimates suggesting around $100 billion per year in extra federal tax revenue. The policy has the potential to reshape trade relationships with major U.S. partners.
