President Trump threatens Canada with 35% tariffs
President Trump threatened Canada with 35% tariffs while saying he’s considering raising blanket tariffs on most trade partners.
WASHINGTON – The European Union warned it could retaliate against the United States if a trade agreement has not been reached by August 1, opening a new front in the fight with President Donald Trump over higher tariffs.
Negotiators from the EU have worked for weeks to strike a deal with the Trump administration. In a statement on July 12, the European Commission said it would continue to work toward a resolution.
“At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” European Commission President Ursula von der Leyen said in a statement.
The EU paused planned countermeasures on more than $24 billion of goods from the United States in April after Trump delayed an announced tariff hike for 90 days amid trade negotiations. However, after Trump unveiled a 30% tariff for the European Union on July 12, the 27-country bloc suggested it might retaliate in kind.
French President Emmanuel Macron was among the European officials pushing for the commission to “resolutely defend European interests,” in a statement in which he said negotiations must intensify.
“In particular, this implies speeding up the preparation of credible countermeasures, by mobilising all the instruments at its disposal, including anti-coercion, if no agreement is reached by August 1st,” he wrote on X.
The office of Italian Prime Minister Giorgia Meloni urged the negotiating parties to stay focused on a deal and warned against launching a trade war.
“We trust in the goodwill of all the parties involved to reach a fair agreement, able to strengthen the West in its entirety, as it would make no sense to spark a trade war between the two sides of the Atlantic, especially in the current context,” the Italian government said. “It is now essential to remain focused on the negotiations, avoiding polarisations that would make reaching an agreement more complex.”
In his letter to Von der Leyen, Trump said that if the bloc were to “raise your Tariffs and retaliate, then, whatever the number you choose to raise them by, will be added to the 30% that we charge.” He included similar language in letters he sent to roughly two dozen other leaders this month.