Trump's tariff threat rocks global auto markets
"If the European Union works with Canada in order to do economic harm to the USA, large scale tariffs, far larger than currently planned," commented President Donald Trump on the reactions of the European Union and Canada.
Donald Trump announced on Wednesday that on 2nd April, he will impose 25% tariffs on all cars and light trucks imported from abroad. The previous rate was 2.5%.
Trump threatens the EU and Canada
The President of the European Commission, Ursula von der Leyen, stated on Wednesday that the EU will assess Donald Trump's announcement of imposing 25% tariffs on all imported cars. "Tariffs are taxes - bad for business, worse for consumers," she commented.
Canada also announced its response.
“This is a very direct attack. We will defend our workers. We will defend our companies. We will defend our country," emphasised Canadian Prime Minister Mark Carney.
“It will happen soon ... we have options. We can introduce retaliatory tariffs," said Carney. He did not provide details.
These announcements prompted a reaction from U.S. President Donald Trump.
"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," announced Donald Trump on the Truth Social platform.
The market is already reacting
The decision by U.S. President Donald Trump to impose 25% tariffs on imported cars has led to declines in stocks of Asian manufacturers.
According to CNBC, Japanese corporations Toyota and Honda lost 3.69% and 2.91% in value, respectively. Nissan, which has two factories in Mexico, recorded a 2.92% drop, and Mazda Motor lost over 6%.
It is estimated that the new tariffs are expected to bring the United States over £78 billion in annual revenue.
