After imposing sweeping tariffs on China, Canada, and Mexico, Donald Trump is all set to write another chapter of his tariff story, this time with the European Union as the target. The US President has once again threatened to extend trade tariffs, reiterating that the European Union, and possibly the UK, will be subjected to new tariffs.

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Trump confirms tariffs on the EU

Speaking on Sunday night, Trump insisted that tariffs on the EU would "definitely happen," repeating his concern over the significant US trade deficit with the bloc and his push for Europe to increase imports of American cars and agricultural products. "It will definitely happen with the European Union, I can tell you that. I wouldn’t say there’s a timeline but it’s going to be pretty soon," he told reporters.

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Trump appeared more lenient towards the UK, citing a positive relationship with Prime Minister Keir Starmer, though he did not rule out potential tariffs.

"The UK is out of line but I’m sure that one, I think that one can be worked out. Well, Prime Minister Starmer’s been very nice, we’ve had a couple of meetings, we’ve had numerous phone calls, we’re getting along very well. We’ll see whether or not we can balance out our budget," he said.

EU vows strong response

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Ahead of Trump’s latest comments, a spokesperson for the European Commission stated on Sunday that the EU would "respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods."

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The commission also reacted to Trump’s decision to impose tariffs on Canada, Mexico, and China, stating: "Tariffs create unnecessary economic disruption and drive inflation. They are hurtful to all sides."

How China, Canada and Mexico responded to tariffs

The announcement comes as Trump’s tariffs on Mexico, Canada, and China, revealed on Saturday, prompted swift retaliation from all three nations. Both Mexico and Canada have pledged retaliation, while China and Canada are also pursuing legal action.

Trump acknowledged that his sweeping tariffs on these countries might cause "short-term" economic difficulties for Americans, as global markets reacted with concern over potential economic slowdown and rising inflation.

"We may have short-term some little pain, and people understand that. But long term, the United States has been ripped off by virtually every country in the world," he said.

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Canada’s retaliatory measures

In response to Trump's tariffs, Canada’s finance department released a list of US imports that will be subjected to a 25% retaliatory tariff from Tuesday. The initial round targets goods worth CAD 30 billion (approximately USD 20 billion), including tobacco, produce, household appliances, firearms, and military equipment.

Canada is also preparing a broader set of tariffs in 21 days, which will impact passenger vehicles, trucks, steel and aluminum products, various fruits and vegetables, beef, pork, and dairy products.

Mexico’s response

Mexico’s president, Claudia Sheinbaum, confirmed that her government would provide further details on its own retaliatory measures on Monday. In a statement on Sunday, Sheinbaum emphasised her preference for negotiation over confrontation.

"Problems are not addressed by imposing tariffs, but with talks and dialogue," she said. "Sovereignty is not negotiable: coordination yes, subordination no."

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Sheinbaum and Canada’s Prime Minister, Justin Trudeau, discussed the issue by phone on Saturday following the US decision to impose tariffs—25% on goods from Canada and Mexico, with a reduced rate of 10% for Canadian oil, and 10% on imports from China.

Canada and Mexico strengthen ties

Trudeau’s office later confirmed that Canada and Mexico had agreed "to enhance the strong bilateral relations" between their nations.

"Now is the time to choose products made right here in Canada," Trudeau wrote on X on Sunday. "Check the labels. Let’s do our part. Wherever we can, choose Canada."

Despite Trump’s warning of potential escalations if retaliatory tariffs were introduced, both Canada and Mexico proceeded with their retaliatory tariffs.

China also announced it would challenge the tariffs through legal means. The US-imposed tariffs "seriously violate" World Trade Organisation rules, according to China’s commerce ministry, which urged the US to "engage in frank dialogue and strengthen cooperation."

Public backlash grows

Beyond official government responses, people have already begun discussing how to adapt to Trump’s decision, with social media users sharing suggestions for alternatives to US products.

Public sentiment was evident in Canada over the weekend, as hockey fans booed the US national anthem on Saturday during two National Hockey League games. The protests continued on Sunday at an NBA game in Toronto, where the Raptors faced the Los Angeles Clippers.

(With inputs from agencies)