Could there be a world trade war? Trump threatens to impose more tariffs on the European Union and Canada

International News.  US President Donald Trump on Wednesday threatened to escalate a global trade war by imposing more tariffs on European Union goods. Following Trump's threat, Canada and the European Union said they would retaliate. Hours after a 25 percent tariff on US steel and aluminum imports took effect, the US President said he would impose additional penalties if the European Union continues its retaliatory tariff plan on some American goods next month. Trump said in the White House that whatever tariff they charge from us, we will charge them the same tariff. Trump's action comes after Canada imposed similar tariffs on American goods in response to the extensive tariffs imposed by Trump. It is noteworthy that Canada is the largest supplier of steel and aluminum to the US.

Retaliation against Canada

Canada's Finance Minister Dominic LeBlanc said that we will not sit idly by while our steel and aluminum industries are being unfairly targeted. Meanwhile, the 27 countries of the European Union are less affected, as only a 'small fraction' of the targeted products are exported to the US.

Trump will impose more tariffs

Trump said he would impose more tariffs if the European Union goes ahead with its plan. Trump, accompanied by Irish Prime Minister Michael Martin, criticized the EU member country for luring American pharmaceutical companies. Martin later touted the history of free trade between the two countries in a speech at a White House ceremony. He looked at Trump and said, "Let us continue to build on that foundation."