Western respond to Trump’s tariffs: Retaliatory measures, investment suspensions

Shafaq News/ On Thursday, French President Emmanuel Macron has urged French companies to suspend all planned investments in the United States “until the situation is clearer” regarding US tariffs.

In a meeting with representatives from sectors most affected by US tariffs, Macron emphasized the need to temporarily halt future investments or those recently announced, urging companies to wait for clarity in relations with Washington.

“This is a message we can send, especially if investments are being made in the US economy while they are imposing tariffs on us,” he said.

Macron warned of the significant impact new tariffs would have on the European economy, but argued that "the real losers will be the Americans, who will emerge weaker and poorer from this trade escalation."

The French president confirmed that the European response to the tariffs would come in two phases. The first phase, starting in mid-April, would target steel and aluminum. The second phase, due by the end of April, would include further measures following a sector-by-sector review.

He also called on the European Union to prepare a strong counter-response, including retaliatory measures targeting American technology and services companies.

Meanwhile, Canadian Prime Minister Mark Carney announced that Canada would impose retaliatory tariffs of 25% on US-made vehicles in response to tariffs imposed by the Trump administration on foreign cars.

These Canadian tariffs would apply only to vehicles that do not comply with the United States-Mexico-Canada Agreement (USMCA), and to "non-Canadian content" in cars and trucks shipped under the agreement's rules.

Canada avoided the so-called "reciprocal tariffs" announced by President Donald Trump on Wednesday, but the new 25% US tariffs on foreign-made cars went into effect Thursday morning. For Canada, these tariffs apply to the non-US components in assembled vehicles.

The Canadian auto sector is highly integrated with the US industry, and it is expected to suffer from the new US tariffs. Stellantis, the parent company of Jeep and Chrysler, announced that it would temporarily close its Windsor, Ontario assembly plant for two weeks to assess the impact of the tariffs, according to a memo sent to employees.