World powers on Thursday condemned U.S. President Donald Trump decision to impose steep tariffs on imported vehicles and car parts, warning of retaliatory measures as trade tensions escalate.
Germany, a major car exporter, called for a strong response from the European Union, while Japan stated it would “consider all options” in reaction to the tariffs.
Stock markets across Asia and Europe declined sharply, with leading automakers such as Toyota, Hyundai, and Mercedes experiencing significant losses.
The U.S. tariffs, set to take effect at 12:01 a.m. (0401 GMT) on April 3, will apply to foreign-made cars and light trucks, with key automobile parts also facing duties later in the month.
“What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States. If they’re made in the United States, it is absolutely no tariff,” Trump announced at the White House.
French Finance Minister Eric Lombard criticized the move as “hostile,” stating that the European Union’s only response would be to raise tariffs on American products.
Canadian Prime Minister Mark Carney said he had convened a meeting to discuss the country’s trade options in light of the new tariffs.
Amid growing warnings of retaliation from Washington’s key trading partners, Trump escalated his threats.
“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!” Trump posted on his TruthSocial platform.
