"We’re Going to Tax the Hell Out of Them" – Trump’s New Trade War Threat Against Europe Has Markets on Edge

Love him or hate him, Donald Trump sure knows how to stir the pot. The former president—and current Republican frontrunner—just dropped a bombshell at a raucous rally in Pennsylvania last night: if he reclaims the White House in 2024, European exporters better brace themselves.

“They’ve been ripping us off for decades,” Trump declared, pointing a finger at the EU’s trade policies. “Those Mercedes? Those French wines? Believe me, we’re going to tax the hell out of them.” The crowd, packed with factory workers and MAGA loyalists, ate it up.

Sound familiar? It should. This is the same playbook Trump used during his first term, when his tariffs on European steel and cheese ignited a messy trade spat. Remember when Harley-Davidson bikes got slapped with EU retaliatory tariffs? That feud left both sides bruised—and experts say Round Two could be even uglier.

Why This Time Feels Different

Insiders in Brussels aren’t mincing words. “We’re not bluffing,” an EU trade official told Politico under anonymity. “If Trump wants another fight, we’ll have tools ready by Monday.” But behind closed doors, there’s nervousness. Europe’s economy is already wobbling under energy crises and inflation; a Trump-led tariff blitz could be the knockout punch.

Meanwhile, Wall Street’s sweating. “This isn’t 2018,” warns economist Claudia Sahm. “Global supply chains are still fragile. Another trade war could send food and gas prices skyrocketing—right before the election.”

The Biden-Trump Split Goes Global

President Biden’s team has spent three years patching up alliances Trump battered. But let’s be real: the “America First” crowd isn’t buying it. In Rust Belt towns, Trump’s tariff talk plays well. “My plant closed because China and Europe stole our jobs,” argued steelworker Jim Callahan, 54, outside the rally. “Trump’s the only one tough enough to fix it.”

Biden’s camp fired back fast. “This is reckless déjà vu,” tweeted campaign spokesperson Lauren Hitt. “American families paid the price last time—higher costs, lost exports. We’re not going back.”

What’s Really at Stake

Beyond the political theater, there’s a deeper game. Trump’s threat hits as the U.S. and EU are already locked in a $20 billion grudge match over subsidies to Boeing and Airbus. Add Trump’s tariffs to the mix, and “it’s not just trade—it’s a full-blown divorce,” said former U.S. trade negotiator Wendy Cutler.

But here’s the twist: Trump’s betting that voters care more about punching back at Europe than cheap champagne. And in an election where Michigan and Pennsylvania could decide everything, that gamble might just work.

The hat is here.