U.S. President Donald Trump warned that if the European Union (EU) and Canada retaliate against the 25% tariff on foreign automobiles, he would impose even higher tariffs.
On the 27th (local time), President Trump noted through the social media platform Truth Social, "If the EU collaborates with Canada to economically harm the United States, a much larger scale tariff than currently planned will be imposed on both nations to protect their closest friend (the United States)."
The day before, President Trump signed an executive order imposing a 25% tariff on foreign automobiles and key parts starting from the 3rd. This tariff is expected to significantly impact Europe, Canada, South Korea, Japan, and Mexico, which export automobiles to the U.S.
Immediately after the U.S. tariff announcement, Mark Carney, Canada's newly appointed Prime Minister, stated it was a "direct attack" and indicated that Canada would take retaliatory measures to protect its interests. Carney also suggested the possibility of imposing counter-tariffs.
Ursula von der Leyen, President of the European Commission, also expressed in a statement, "We deeply regret the decision by the U.S. to impose tariffs on European automotive exports," adding, "The EU will continue to seek solutions through negotiations while protecting its economic interests."
Previously, the EU announced it would impose retaliatory tariffs on a total of 26 billion euros (approximately 41 trillion won) worth of U.S. goods in two phases on the 1st and the 13th of next month in response to the Trump administration's imposition of a 25% tariff on foreign steel and aluminum products. However, it has postponed the implementation of the first phase of the measures initially scheduled for the 20th.