Trump Announces Tariff Plans for the EU Amid Intensifying Global Trade War

Countries Prepare to Counter U.S. Tariffs as Economic Tensions Rise

Donald Trump, former U.S. President, has announced plans to impose tariffs on the European Union (EU) after initiating similar measures against Canada, Mexico, and China, signaling a full-scale escalation of the ongoing global trade conflict. Countries affected by the tariffs have strongly opposed the move, with Canada and China preparing to challenge the decision through the World Trade Organization (WTO) while announcing retaliatory measures.

On February 2 (local time), Trump posted on his social media platform, Truth Social, stating that although the decision might cause some short-term pain, it was essential for "America's golden age." He emphasized that the United States had been suffering massive trade deficits with Canada, Mexico, and China, amounting to $36 trillion (approximately 5,250 quadrillion Korean won) in national debt. According to Trump, these tariffs aim to ensure the U.S. is no longer perceived as a "stupid country."

Under the International Emergency Economic Powers Act (IEEPA), Trump signed an executive order authorizing the imposition of tariffs effective February 4. These measures include a 10% tariff on Canadian energy products and 25% on other goods. Mexico faces a 25% tariff across all product categories, including energy. China will also be subjected to a 10% general tariff.

Immediate Global Backlash and Countermeasures

China immediately announced plans to file a complaint with the WTO, citing violations of international trade regulations. Similarly, Canada declared its intention to impose a reciprocal 25% tariff on American goods while filing a WTO complaint against the United States. The retaliatory tariff list released by Canada includes products such as honey, tomatoes, whiskey, refrigerators, and even toilets. Canadian Prime Minister Justin Trudeau urged citizens to support domestic products and avoid travel to the United States during the summer.

Mexico's President Claudia Sheinbaum hinted at further retaliatory actions, stating in a public speech on February 2 that specific countermeasures would be revealed the following day. She suggested that Mexico would target American imports, potentially impacting key industries. Sheinbaum emphasized that Trump's tariff strategy would ultimately hurt American consumers by raising prices.

China's Ministry of Commerce condemned the U.S. tariffs, accusing the country of violating WTO regulations and promising to take "appropriate retaliatory measures" to safeguard China's interests. However, the effectiveness of these WTO complaints remains doubtful due to previous actions by Trump during his first presidency. His administration had blocked the appointment of new WTO appellate judges, rendering the organization unable to handle legal disputes since late 2019.

Expansion of Tariffs to Key Sectors

Beyond targeting these nations, Trump has also announced plans to extend tariffs to specific sectors, including semiconductors, steel, aluminum, copper, oil, and gas. If any affected country retaliates, the former President warned that additional tariff hikes would be implemented as a counter-response.

Potential Trade War with the EU

Trump's recent statement that the EU would "unconditionally" face new tariffs has raised concerns over a looming transatlantic trade war. The EU, which had already expressed concerns about the tariffs imposed on Canada, vowed to take decisive action should the U.S. extend similar measures to Europe.

The European Commission, the EU’s executive branch, condemned the U.S. decision as arbitrary and unjust, warning that any tariffs imposed on European products would prompt a resolute response. German Chancellor Olaf Scholz, speaking alongside British Prime Minister Keir Starmer, emphasized the importance of free trade for global economic prosperity. He urged countries to avoid dividing the world with tariff barriers, stressing the significance of maintaining open markets for goods and services.

As the global economic landscape faces heightened uncertainty, experts warn that the unfolding tariff conflict may have far-reaching consequences for international trade and market stability. The escalating situation signals not just a bilateral dispute but a potential reshaping of global economic alliances.