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US President Donald Trump spoke to media in the Oval cabinet in the White House in Washington, Colombia County, USA, March 26, 2025.
Evelyn Hokstein | Reuters
US President Donald Trump has threatened to impose “far larger” tariffs for the European Union (EU) and Canada if they work together to combat trade tariffs.
“If the European Union is working with Canada to cause economic damage to the United States, the large -scale tariffs, much larger than the currently planned, will be placed on them both to protect the best friend that each of these two countries ever had,” Trump said in the social truth of social truth social truth Update Thursday.
On Wednesday, the White House leader announced that he would determine a 25% tariff of “all cars that are not made in the United States” with the taxes that must come into force on April 2.
Trump’s White House assistant Will Sharf said the new responsibilities are being applied to “foreign cars and light trucks” and come in addition to the tariffs already available.
Most importantly Rates It will also apply to car parts, including engines, transmission and electrical components – many of which are sent to the United States from abroad and used in US car production, although they will come into force in May. Sharf estimated that measures would lead to “over $ 100 billion new annual revenue” in the United States
The global markets were shaken as a new front, open in the growing world trade war, with shares from us and Asian car manufacturers fall After the message and European car giants are expected to do the same On the market open on Thursday.
Trump has already increased long-term global commercial relations, imposing obligations to import goods from Mexico, Canada and China, as well as taxes on the entire import of steel and aluminum, because he sees as unfair commercial deficits that the United States has with its largest trading partners.
The White House Wednesday said the latest tariffs will “protect and strengthen” the automotive industry in America, although analysts say that US car manufacturers use parts around the world for assembly, which means that obligations can also influence them.
The EU and Canada have not yet issued any statement that suggests that they will unite to harm the United States, as Trump’s publication pointed out, but both have signaled that they can avenge the most imposed.
European Commission President Ursula von der Leyen said the EU “would continue to seek negotiation decisions while defending its economic interests.”
“Tariffs are taxes – bad for the business, worse for consumers equally in the US and the European Union,” she said in statementS
Meanwhile, Canada’s new Prime Minister Mark Carney has identified Trump’s course as a “direct attack” and told reporters that a high -level cabinet meeting would be accustomed to Thursday to decide.
“We will protect our workers, protect our companies, protect our country and protect it together,” he said at Kitchener, Ontario, According to ReutersS
Cars are “so political”
The latest tariffs are grim reading for the already hassle -free automotive industry in Europe, which is struggling to innovate and compete with manufacturers in Asia.
The European Association of Car Producers said that on Thursday it was “deeply concerned” by the latest tariff message, which noted that it was coming “to a waterfront for the transformation of our industry and as a fierce international competition”.
Ludovic Subran, Chief Economist and Chief Investment Officer in Allianz, CNBC told CNBC on Thursday that the latest tariff message and targeting European automakers – since jewelry in the European industry’s crown was not unexpected.
“Cars are so political,” he told CNBC’s Squawk Box Europe.
He added: “You saw the reaction of the stock markets, car manufacturers. It comes at a time when there is a lot of uncertainty about car consumption, car registration has descended from the beginning of the year, so this is really another of these basic seismic waves of the Trump administration and starting from the most important cars.”
Trump’s tariff policies have anxious economists who warn they are likely to be inflation and raise prices for US citizens in times of already low users’ trust. The same concerns apply to the most duties for cars, analysts say.
“In our opinion, these initial tariffs (if they are held in their current form) would be a wind -like wind -like (and many American) car manufacturers and will eventually push the average price of cars by $ 5k to $ 10,000, depending on the brand/price point,” the Wedbush analyzers said.
“We continue to believe that this is some form of negotiations and these tariffs can change by the week, although this initial 25% tariff for cars outside the United States is an almost insolvent head scratch number for US users,” analysts said.
– Kevin Breunner and Aimon Javer of CNBC have contributed to reporting this story.
