Trump warns the EU and Canada not to join to resist tariffs – have to follow the beating or worse
President Trump warns the EU and Canada not to get any ideas about joining forces to surpass their the upcoming tariff announcementsspeaking if They join against the USA Will face the consequences.
Next Wednesday is the Day of Trump’s Administration – and indeed for economics around the world. ‘Liberation Day’, as Trump called him, will confirm Further tariff actions against the rafts of countries.
Although Trump admitted that the announced policies may not be at the most extreme end of the ladder, he is already threatening key trade partners Firmer sanctions than planned If they try to harm America in exchange for tariffs.
Writing about the Truth Social, a platform of social media that he owns, Trump wrote in early hours This morning: “If the European Union works with Canada to do the US economic damage to the US, they will be placed a large tariff, far greater than it is currently planned, to protect the best friend whom each of these two countries ever had!”
It is worth noting that the EU is not a country.
It is unclear exactly what he deals with Trump believes that the EU and Canada are assembled to damage US interests.
However, Tirada came shortly after Trump announced 25% of tariffs on all cars entering America, regardless of their country of origin.
This encouraged the solid response of European Commission President Ursula von der Leyen, who warned the UA statement That “Tariffs are taxes – for companies, worse, for consumers equally in the USA – to the European Union.”
Von der Leyen added that the EU will evaluate the influence of the car tariffs – the key industry on the EU – and other measures that President Trump will publish in the coming days.
“The EU will continue to seek negotiating solutions, while protecting its economic interests,” the statement added.
Meanwhile, the new Canadian Prime Minister Mark Carney described the car tariff as a “Very direct attack” Adding: “We will defend our workers. We will defend our companies. We will defend our country.”
Reaction in the market
If there is one thing The market does not like it, it is uncertainty.
And tightening At the edge of a trade war Between some of the greatest economic powers on the planet, it certainly adds a sense of discomfort.
As Mark Haefele, the CEO of Investing in UBS Global Wealth Management, wrote this morning: “The threat of further escalation of tariff remains key concern, but our economic forecasts do not require a recession in the United States
“In our basic case, a wide range of selective tariffs and conservation is likely to lead to slower economic growth compared to last year, but they should not prevent the US economy by around 2% of the historical rate of trends – this year.”
This is in contrast to The Deutsche Bank poll has shared earlier this weekwhich revealed that 43% of 400 surveyed analysts were recession in the next 12 months.
UBS expects continuing volatility in April, he added, but said his fundamental message was left in stock.
“That tariff hit was obviously wider among global shares,” he added Deutsche Bank Economist Jim Reid. “In the US, a magnificent 7 (-3%) recorded a particularly large decline, a turnaround, after the strongest three-day performances from the US election.
“In return, it has withdrawn a series of S&P 500 (-1.12%) … which only shows how much MAG 7 is there. Some of the more defensive sectors, including consumer staples (+1.42%) and service programs (+0.7%), put in solid performance, but Nvidia (-5.74%) and Tesla (-5.58%) led the fall, ending the session as the fifth and 7th worst performers in the S&P 500. “
On cars, Goldman Sachs can see the way to some domestic car manufacturers like Tesla moving into the effects of the Tariff announcement.
EV manufacturer admitted that it was – withholding his executive director with close relationships with the White House –Oval office policies “expose” inherently American car manufacturers to retaliation.
Goldman’s economists Mark Delaney, Will Bryant, Morgan Leung and Aman Gupta wrote: “We still believe that the tariffs are unresolved risk of earnings and for manufacturers of original equipment (OEMS) and suppliers, although the degree of risk for the OEM in our covering (Tesla, the combination, and the combination To charge and take on, and forbidden to prices, and share, and share, and can be increased to prices, AI is forbidden, and rates on races, and stakes on prices or shares.
They added: “There are some scenarios where US OEM can fully compensate for tariffs (or may be net users) by combination of factors (adjusting chains of supply, production and prices).”
This story is originally shown on Fortune.com
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