US tariffs spark backlash as Trump threatens Canada and EU, shaking global markets and trade relations
US President Donald Trump reaffirmed his commitment to implementing extensive tariffs, despite concerns over market volatility and international relations, according to CNBC.
During an Oval Office meeting with NATO Secretary General Mark Rutte, Trump stated, “I’m not going to bend at all,” emphasizing that the US had been “ripped off for years” and would no longer tolerate such practices.
The American president confirmed plans to enforce “reciprocal tariffs” on countries imposing trade barriers against US goods, with these measures set to take effect on April 2.
He specifically criticized Canada, the US's top trading partner, asserting, “We don’t need anything they have,” and reiterated his controversial suggestion to consider Canada as the “51st state.”
Trump acknowledged potential disruptions resulting from these actions but assured, “There’ll be a little disruption, but it won’t be very long.”
These developments coincide with significant declines in US stock markets. The S&P 500 has fallen 10 percent from recent highs, entering correction territory.
Analysts and business leaders have expressed concerns that Trump's tariff policies and their unpredictability are contributing to market instability.
Yardeni Research, for instance, lowered its S&P 500 price target for 2025 to 6400 from 7000, citing the administration's tariff strategies as a factor, according to Barron’s.
The European Union has responded to new US tariffs on steel and aluminum imports by announcing a 50 percent tariff on American whiskey and other US goods.
In retaliation, Trump threatened a 200 percent tariff on EU alcohol exports, including wines and French champagnes, unless the EU withdraws its countermeasures.
The California wine industry is particularly concerned about these developments, as the proposed tariffs could make European wines prohibitively expensive in the US, potentially benefiting domestic producers but also disrupting existing market dynamics, according to the San Francisco Chronicle.
Earlier in the week, as per The Guardian, Trump threatened to double tariffs on Canadian steel and aluminum imports to 50 percent, responding to Ontario's decision to impose a 25 percent surcharge on electricity exports to the US.
New York Post reports that this escalation contributed to a significant downturn in the stock market, with the Dow Jones Industrial Average falling nearly 600 points before closing down 478.23 points (1.1 percent) on Tuesday.
Ontario Premier Doug Ford subsequently paused the surcharge, leading Trump to retract his tariff threat.
At the recent G-7 meeting in La Malbaie, Canada, diplomats from industrial democracies expressed solidarity with Canada in light of Trump's threats.
German diplomat Annalena Baerbock and EU's Kaja Kallas showed support by posing with a unifying message and dressing in Canada's flag colours.
Italian Foreign Minister Antonio Tajani rejected Trump's idea of annexing Canada, affirming the country's independence, according to The Wall Street Journal.
US Commerce Secretary Howard Lutnick defended the administration's trade policies, stating that the tariffs are “worth it” even if they lead to a recession.
He emphasized that the tariffs are key to producing revenue, growth, and new factories in America, dismissing concerns of potential economic downturns as a result of previous administration policies.
