US President Donald Trump promised on Sunday to impose export tariffs on the European Union, citing previous complaints about the US trade “deficit” and his desire for Europe to import more American cars and agricultural products.
Trump’s threats raised concern after he followed through on Saturday on his promises to impose tariffs on Canada, Mexico, and China on Monday, causing shares of companies in Europe and Asia to slide, the BBC reported.
The main European stock markets all shed more than 1% of their value, and Japan’s stock also closed down 2.7%.
Canada and Mexico are now facing 25% tariffs on their exports to the US, while Chinese products will face a 10% increase on existing tariffs, effective tonight at 12:01 A.M. on February 4.
Canada, Mexico, and China have promised to implement countermeasures to Trump’s policies and strike back with retaliatory tariffs.
Investors are bracing for a period of uncertainty as Trump plans to widen the scope of his trade tariffs, warning that the EU is next.
“It will definitely happen with the European Union, I can tell you that,” he told reporters on Sunday. “I wouldn’t say there’s a timeline, but it’s going to be pretty soon.”
Trump seemed to take a more lenient tone when asked about the UK, citing a good relationship with Prime Minister Keir Starmer, the Guardian reported.
“The UK is out of line, but I’m sure that one, I think that one can be worked out,” he said.
“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, and we’ll see whether or not we can balance out our budget.”