Following US President Donald Trump’s announcement of a 25% tariff on imported cars on Thursday, governments from Ottawa to Paris warned reprisal, intensifying a global trade war, crushing stocks, and straining already strained relations with allies.
The new taxes on cars and light trucks will go into effect on April 3, the day after Trump intends to declare reciprocal tariffs targeted at the nations he holds responsible for the majority of the US trade deficit. In 2024, the United States imported $474 billion worth of automotive goods, including $220 billion worth of passenger automobiles.
The largest suppliers were close friends of the United States, including Mexico, Japan, South Korea, Canada, and Germany. The US is the ultimate guarantor of European security, and the tariffs are a sucker punch for Europe at a time when relations with Washington have deteriorated on problems like the crisis in Ukraine and the breaking of a decades-old transatlantic partnership.
European Commission President Ursula von der Leyen described the action as “bad for businesses, worse for consumers.” Prime Minister Mark Carney of Canada convened a cabinet meeting to discuss possible retaliatory measures.
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