Update from February. 3, 2025 at 16:59 East: Prime Minister Justin Trudeau says the US tariffs in Canada will be “paused” for 30 days. Read more about the announcement here.
European leaders defended themselves for Now tariffs on Monday after the President of the United States Donald Trump They have imposed a charge for Mexico, Canada and China that will affect billions of dollars in the store, cheering on global markets and currencies.
Trump said that Tariffs against the three largest American shopping partners, who enter into force on Tuesday, could cause Americans some short -term pain, but “in the long run, the United States has driven almost every country in the world.”
Global stock exchanges and currencies collapsed on Monday due to concern that Tariffs would launch an economically detrimental trade war. The Stoxx 600 Paneurop Index dropped 1.3 percent in morning trading, which was set for its largest one -day slide this year, and the future for the S&P 500 Wall Street has dropped 1.4 percent.
Speaking on his estate of MAR-a-Lije Florida on Sunday, Trump indicated that the European Union of 27 countries would be next in shooting, but did not say when.
“They don’t take our cars, they don’t take our farms. They take almost nothing, and we take everything from them,” he told reporters.
The EU leaders meeting at the informal summit in Brussels on Monday said that Europe will be ready to fight if they are being imposed by tariffs now, but also invite to reason and negotiations.
Coming to conversations, French President Emmanuel Macron said the EU would be attacked in its commercial interests, it will “have to respect themselves and react.” He added that recent declarations from the United States push Europe to be stronger and united.
As Canadians are planning to push against Trump’s tariffs imposed
Chancellor Olaf Scholz from Germany, the largest EU economy, which is very dependent on exports, also said that the block could answer if needed by their own tariffs against USA, but emphasized that it was better to find a trade agreement.
Luxembourg Prime Minister Luc Frieden said, “I think the tariffs are always bad. The tariffs are bad for trade. The tariffs are bad for the United States.”
Trump hinted that Britain, which left the EU 2020, could be spared the tariffs, saying, “I think it can be elaborated.”
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He is now the largest trade and investment partner of the EU -Ai consistently imported more goods than he has taken to the block. The deficit of US goods was 155.8 billion euros ($ 161.6 billion) in 2023, according to Eurostat.
However, in the services, the US had excess exports through imports with EU of 104 billion euros.
EU Foreign Policy Chief Kaja Kallas said there was no winner in the trade war, saying that if one broke out between Europe and the United States, “then he who laughs on the side of the cinema.”
Tariffs in Canada, Mexico and China, listed in three executive commands, should take effect on Tuesday 12:01 et.
Trump said he would talk to the leaders of Canada and Mexico on Monday, who both announced the retail tariffs, but diminished the expectations that he would change his mind.
“They owe us a lot of money and I’m sure they will pay,” Trump told reporters.
Economists have said that the Republican President’s plan will impose 25 percent of tariffs in Canada and Mexico, and ten percent of tariffs at China, will slow down global growth and increase prices for Americans.
Trump says they need them to suppress immigration and narcotics and encourage the domestic industry.
China and Mexico follow the Canadian footsteps, vowing a quick response to Trump’s Tariff Trump
The financial market reaction on Monday reflected concern about falling from a trade war. The Tokyo shares have completed the day falling nearly three percent, and the reference value of Australia – often proxy stores for Chinese markets – dropped 1.8 percent. The Continental China market was closed to the lunar New Year holidays.
Chinese Juan, the Canadian dollar and Mexican peso all collapsed toward the Exalted Dollar. With Canada and Mexico, the top sources of imported raw oil in the United States, US oil CLC1 prices have jumped more than 1%, while the gasoline futures RBC1 has increased by almost three percent.
Trump’s tariffs will cover almost half of all US imports and will demand that the United States will be more than doubled their own production to cover the gap – an improper task in the short term, analysts wrote.
Other analysts said the tariffs could throw Canada and Mexico into a recession and start “stagflation” – high inflation, growth growth and high unemployment – at home.
In Europe, economists from Deutsche Bank said they are currently factor in 0.5 percent of the gross home product (GDP) if Trump imposes ten percent of the block on the block.
The White House facts did not give details about what Canada, Mexico and China will need to do to win a refund.
Trump vowed to keep them in place as long as what he described as a national emergency because of fental, a deadly opioid and illegal immigration to the United States.
China called the problem of Fentanil America and said that she would challenge the tariffs at the World Trade Organization and take other countermeasures, but also left the door open to talk.
Mexican President Claudia Sheinbaum promised resistance and said she would provide more details on Monday about the retaliation she ordered on weekends. Canada said she would take legal proceedings under the appropriate international bodies to challenge the tariffs.
Car manufacturers would be particularly affected, with new tariffs on vehicles built in Canada and Mexico, burdening a huge regional supply chain in which parts can cross the boundaries several times before the final assembly.
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Stocks at Volkswagen Vowg_p.de, BMW BMWG.DE, Porsche P911_p.de, Stellantis stlam.MI, and truck truck Daimler Truck Dtgge.de, all fell by about five to six percent in European trading on Monday.
Analysts at the Stifel Investment Bank estimated that they would affect the Eight EUR EUR EUR 16 billion in the tariffs on the tariffs.
The shares in the USA Big Tech shares were also lower in front of the US Open, and Microsoft, Alphabet, Amazon and Apple all dropped between 1.5 percent on two percent.
Trump has only imposed ten percent on energy products.
