Trump Warns of Higher Tariffs on EU, Canada if They ‘Harm U.S.’

U.S. President Donald Trump warned that he would impose higher import tariffs on the European Union and Canada if they work together to undermine the U.S. economy.

Key Points to Know:

• Donald Trump warned of higher import tariffs on the European Union and Canada if they take actions that harm the U.S. economy.

• Financial markets remain stable despite the threat, with Bitcoin trading below $88,000 and Germany’s DAX futures down 0.3%.

• Market resilience may stem from Federal Reserve Chairman Jerome Powell’s remarks, suggesting that inflationary effects from tariffs could be temporary.

U.S. President Donald Trump has vowed to impose significantly higher tariffs on the European Union (EU) and Canada if they collaborate in ways that he believes could harm the U.S. economy.

"If the European Union joins forces with Canada to damage the U.S. economy, they will face large-scale tariffs—far beyond what is currently planned—as a measure to protect the nation that has been their greatest ally," Trump stated in a late-night Truth Social post on Wednesday.

Financial markets showed little reaction to the latest tariff warning, with Bitcoin holding below $88,000. Meanwhile, Germany’s DAX futures slipped 0.3%, while Wall Street futures remained flat to slightly positive.

The market’s stability is likely driven by Federal Reserve Chairman Jerome Powell’s recent comments suggesting that any inflationary impact from tariffs could be temporary.