Introduction
In a late-night Truth Social post on March 27, 2025, President Donald Trump escalated his trade war rhetoric, warning Europe and Canada of steep tariffs if they conspire against the U.S. economy. Fresh off signing a 25% tariff on auto imports, Trump’s moves signal a seismic shift in global trade relations. This article explores the new tariffs, their market impact, and the brewing backlash as of March 27, 2025.
Trump’s Tariff Threats and Auto Import Order
At 2:00 AM ET, Trump posted on Truth Social, hinting at “large-scale tariffs” on the EU and Canada if they undermine the U.S. “If the European Union works with Canada… far larger [tariffs] than currently planned will be placed on them both,” he wrote. On Wednesday, he signed an order imposing a 25% tariff on all auto imports, effective next week, alongside “reciprocal tariffs” set for April 2. Trump told reporters, “This will continue to spur growth,” projecting $100 billion in revenue.
Market Reactions and Global Fallout
The euro dipped and the Canadian dollar weakened after Trump’s post, per Bloomberg. Japan’s auto sector took a hit, with Toyota (-2%), Honda (-2.5%), and Mazda (-6%) plunging on the Nikkei 225, as noted by Goldman analyst Sean Low. The offshore yuan rose after Trump hinted at easing some China tariffs. In the U.S., Tesla emerged as a winner with its domestic production, though Elon Musk cautioned on X that Tesla still faces “significant” tariff costs.
Europe and Canada Push Back
The EU is gearing up for retaliation, with France urging the European Commission to use its anti-coercion tool, per Bloomberg. European Commission Chief Ursula von der Leyen tweeted her regret, calling tariffs “taxes—bad for businesses, worse for consumers.” Canada’s Mark Carney labeled the levies a “direct attack” on workers, vowing to “inflict trade pain,” while Ontario Premier Doug Ford threatened U.S. auto targets. Japan’s PM Shigeru Ishiba also hinted at countermeasures.
Impact on Automakers and U.S. Strategy
Goldman analysts Chloe Garber and Jonathan Hurvitz noted Tesla and Rivian benefit from domestic production, while Ford (80% U.S.-sourced) and GM (60-70%) face mixed outcomes. Trump sweetened the deal with a plan to allow Americans to deduct interest on U.S.-made car loans, saying, “We’re going to charge countries for taking our jobs.” As GM and Ford shares tumbled, CEOs Mary Barra and Bill Ford scheduled talks with Trump’s team, per the Detroit Free Press.
Author: Planet Today | Source: Planet Today
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