European Commission President Ursula von der Leyen "deeply regrets" the United States' new 25% tariff on foreign-made cars, as announced by President Donald Trump on Wednesday night.
The car-import tariffs represent a new step in the ongoing trade war initiated by Washington, with the EU leader responding that the bloc will protect its workers, businesses and consumers.
"The automotive industry is a driver of innovation, competitiveness, and high quality jobs, through deeply integrated supply chains on both sides of the Atlantic," Von der Leyen said in a statement on Wednesday.
"As I have said before, tariffs are taxes – bad for businesses, worse for consumers equally in the US and the European Union," she stated. The European Commission will "assess this announcement" and "continue to seek negotiated solutions, while safeguarding its economic interests."
The tariffs will take effect on 2 April, with the US government expecting them to generate an additional $100 billion in annual revenue. They are likely to have a major impact on car brands such as Volkswagen in Germany and Toyota in Japan.
The US President said he would announce further import tariffs on 2 April, which he calls America’s 'Liberation Day.' These will be reciprocal tariffs against countries that impose duties on US products.
US President Donald Trump announces tariffs on auto imports. Credit: Belga / Mandel NGAN / AFP
The United States has also increased tariffs on steel and aluminium, with Canada being a significant supplier of these materials.
In response, Trump has threatened the EU and Canada with additional tariffs on Thursday if they coordinate against the US.
"If the European Union works with Canada to harm the United States economically, large-scale tariffs, much higher than those currently in place, will be imposed on both to protect the best friend either of these countries has ever had!" he posted on social media.
Was the EU taken by surprise by the US announcement? “The point is not if we were surprised or not but if we are prepared and here our answer is and remains yes,” a Commission spokesperson told The Brussels Times.
He did not say if the EU will speed up its decision process on retaliatory counter measures. “We are prepared to safeguard our economic interests and if necessary, deliver a firm, proportionate, robust, well-calibrated and timely response to any unfair and counterproductive measures from the US.”
He emphasized that the EU’s priority is to find a negotiated solution that works for both sides, for the EU and the US, “a solution that strengthens their trade and economic relations that are by any distance the most valuable and important in the world”. The EU wants to build up relations, not tear them down. “We believe that the measures announced by the US go completely in the wrong direction.”
Update: The article has been updated to include the Commission's spokesperson's response to the US announcement.
