For the second time this week, President Trump threatened to sabotage trade with his close allies who launched a trade war – a strategy that could lead to compromise or economic contenders that further out of control of the power.
On Thursday morning, Mr. Trump tried to surrender the European Union to obedience and threatened to impose 200% tariffs on European wine and champagne in social media posts unless the group cuts tariffs on American whiskey by 50%. The European Union imposed tariffs on Mr. Trump’s levy on Wednesday on global steel and aluminum.
Mr. Trump took a similar strategy on Tuesday to Canada, threatening to impose a 25% tariff on Canadian steel and aluminum to allow Ontario to increase surcharges on electricity sold to the United States. The province imposed charges on the charge after Trump filed other tariffs on Canada this month.
Mr. Trump backed off his threat after Ontario suspended its surcharge.
Over the past few weeks, Mr. Trump has hosted a confusing and potentially economically devastating tariffs and tariff threats, playing the global chicken game as he tries to pull some of the closest U.S. allies and trading partners back.
Mr. Trump has employed the tariff threat without considering its economic consequences and does not seem to consider the impact on the stock market. Mr. Trump threatened Europe and reiterated at the White House that he would impose a large amount of tariffs on him and fell again on Thursday.
“I wouldn’t bend over at all,” said Canada when asked if he might send a delegation to the United States on Thursday to quell trade tensions.
He said the U.S. does not need imports from Canada like timber and energy, one of the U.S.’s largest trading partners. “We don’t need anything they have,” he said.
The president spoke with reporters during a meeting with North Atlantic Treaty Organization Secretary General Mark Rutte, who admitted his tariffs could cause “somewhat disturbances” but said “it won’t be too long.”
“We have to do this,” he said. “I’m sorry, we have to do this.”
Treasury Secretary Scott Bessent asked about market volatility and the economic impact of tariffs on Thursday, saying the White House is not worried about the “short term”.
“We have a strategic industry that we have to have,” Becente said. “We want to protect American workers.”
Commerce Secretary Howard Lutnick also warned other countries not to retaliate against the United States, saying in an interview on Bloomberg on Thursday that Mr. Trump could be furious.
“If you make him unhappy, he will answer unhappy,” Mr. Lutnik said.
Mr Lutnik said some countries, such as the United Kingdom and Mexico, have carefully studied how they do business with the United States. But for countries that respond with further tariffs, “the president will deal with them with strength and power,” he threatened.
It remains to be seen whether other countries will retaliate with their taxes, and if so, how many economic disagreements may be trapped in a real trade war. Mr. Trump has pledged to launch more levies for cars and other products in April.
Some governments, such as those in Australia, Brazil, Britain, Japan and Mexico, chose not to retaliate now because they tried other routes to eliminate tensions with Mr. Trump. But China, the EU and Canada have all made different calculations.
Domestic political voters may encourage these administrations to compete with Mr. Trump’s bullying, or, in the case of Europe and China, the courage to the scale of their economy.
Some European officials say they won’t succumb to pressure. In a statement Wednesday, European Commission President Ursula von der Leyen said Europe needs to take action to “protect consumers and businesses” which will take a “strong but proportionate” countermeasure.
He added: “We will not succumb to threats,” French Foreign Trade Minister Laurent Saint-Martin said in an article on X. Mr. Trump is “increasing the trade war he chose to release.”
Canadian officials are also often outspoken against the United States, a dynamic that could be expanded by political transition and the upcoming federal election in Canada.
“If you hit us, we will hit back,” former Canadian Treasury Secretary Chrystia Freeland said in an interview with CNN on Thursday. Canada is small but has leverage in economic relations because it is by far the largest export market in the United States.
“Canada is more important export market than China, Japan, Britain and France combined,” she said. “You are the country that invents the country that is always right for customers. Well, we are your biggest customer.”
Canada filed a dispute at the World Trade Organization on Thursday against the steel and aluminum tariffs imposed by Mr. Trump the day before. China filed a lawsuit against a separate series of tariffs last month. But the WTO challenge is largely a symbolic gesture, as the United States weakened the group’s dispute settlement system during Trump’s first term.
Canadian officials are expected to meet with Mr. Lutnik on Thursday to discuss trade issues. European Trade Commissioner Maros Sefcovic will have a conversation with U.S. Trade Representative Lutnick and Jamieson Greer on Friday, a European spokesman said.
Jeanna Smialek and Matina Stevis-Gridneff Contribution report.
