Trump’s latest tariff threat is a wake-up call for US trade partners

Subscribe to enjoy similar stories.President Trump’s threat to raise tariffs on European cars is a warning for investors and U.S. trading partners that the Iran war hasn’t dissuaded him from his trade agenda or his willingness to strong-arm allies through economic pressure.Trump said Friday that the U.S. would increase tariffs on European cars and trucks to 25% from the 15% level that was agreed to as part of a preliminary trade deal last summer.

He said the European Union wasn’t complying with the deal and that the higher duties would take effect this week.The move upends a period of relative calm in economic relations between the U.S. and EU, whose annual two-way trade relationship is worth roughly $1.5 trillion. It also highlights how much uncertainty remains for U.S.

trading partners months after the administration struck agreements with many of them, and even as global attention has turned to the Middle East.Beyond the tariff threat on European cars, Trump has publicly floated abandoning a trade deal he signed with Mexico and Canada that is up for review this year. The administration is also working on replacing tariffs that were struck down by the Supreme Court earlier this year. The U.S.

is still negotiating details in its agreements with several Asian countries, and recently targeted Vietnam with fresh concerns.The U.S. is unhappy with how long the EU is taking to follow through on its commitments from the trade deal, including a pledge to eliminate tariffs on U.S. industrial goods.