US President Donald Trump said on Thursday that higher tariffs could be imposed on the European Union and Canada if they work together to "cause economic harm to the United States."
"If the European Union works with Canada to inflict economic harm on the United States, massive tariffs, far greater than currently planned, will be imposed to protect the best friend each of these two countries has ever had," Trump posted on Twitter.
Trump announced plans on Wednesday for long-promised tariffs of up to 25 percent on car imports.
"What we're going to do is put a 25 percent tariff on all cars that are not made in the United States," Trump said in the Oval Office. "We're starting with a base of 2,5 percent, which is where we are, and we're going to go up to 25 percent."
Trump, who sees tariffs as a means to raise revenue to offset promised tax cuts and revive America's industrial base, said the new import taxes would take effect on April 2, the same day he plans to announce reciprocal tariffs on countries responsible for the bulk of the US trade deficit.
The collection of new customs duties on cars would begin on April 3rd.
Global markets are jittery as a new front has opened in the escalating global trade war.
After Trump's announcement, shares of American and Asian automakers fell.
Trump has already upended long-established global trade relations by imposing import tariffs on goods coming from Mexico, Canada and China, as well as levies on all steel and aluminum imports.
The White House claims the latest tariffs will "protect and strengthen" the US auto industry, although analysts point out that American automakers use parts from around the world for assembly, meaning the tariffs could also affect them.
The European Union and Canada have not yet issued any statements.
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