Donald Trump has threatened the European Union and Canada with significantly increased car tariffs, warning that both could face “far larger” duties if they act against U.S. economic interests.
Just hours after unveiling a 25% tariff on all imported vehicles and parts on Wednesday, the former president suggested even steeper levies could be introduced. “If the European Union works with Canada in order to do economic harm to the USA, large-scale tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had,” he wrote on Truth Social.
The new U.S. tariffs are scheduled to take effect at 4am GMT on April 3, targeting foreign-made cars and light trucks. Additional duties on key auto parts are expected to follow within the month.
Speaking from the Oval Office as he signed the order, Trump declared: “What we’re going to be doing is a 25 per cent tariff on all cars that are not made in the United States.”
The announcement triggered an immediate backlash from global leaders. European Commission president Ursula von der Leyen criticised the move, calling car tariffs “bad for businesses, worse for consumers.”
Japan’s government described the decision as “extremely regrettable,” with Prime Minister Shigeru Ishiba stating Tokyo is “considering all kinds of countermeasures.”
Canadian Prime Minister Mark Carney labelled the tariffs a “direct attack” and warned of retaliatory measures in response.
Markets reacted swiftly, with automaker stocks falling across Asia. Toyota and Honda each dropped over 3% in Tokyo, while Nissan lost 2.5%. In Seoul, Hyundai shares slid more than 4%.
US-listed carmakers also took a hit, with General Motors, Ford, and Stellantis all sharply lower in after-hours trading.
