International reaction has been sparked by Donald Trump‘s announcement of a 25% tariff on all imported cars, a move that widens the front of the trade war that has opened up since his return to the White House.

“What we will do is impose 25% tariffs on all cars that are not made in the United States,” Trump said from the Oval Office, with his remarks reflected on international stock exchanges and with shares of Asian and European carmakers paying a heavy price.

European shares opened with significant losses, with the Stoxx Europe autos index plunging 3.3% in early trading. Jeep maker Stellantis was 5.6% lower at 8:16 a.m. in London, while Mercedes-Benz lost 5% and Germany’s BMW was down 4.4%. The Stoxx 600 is currently down 0.96% at 543.44 points.

Earlier, on the Tokyo Stock Exchange, the stocks of big names in the sector were all down without exception: Toyota (-3.72%), Mitsubishi (-3.7%), Nissan (-3.2%), Honda (-2.77%). The general index was also down, though not as spectacular (-0.79%). In Seoul, shares of Hyundai Motor (-3.15%) and Kia Corporation (-2%) were on a similar trajectory.

Trump’s new threats to the EU and Canada

In a new post on Truth Social late last night, he threatened more tariffs on the EU and Canada if they act against the US or, as he wrote, if they work together “to cause economic harm” to the US.

He said they would be subject to large-scale tariffs “much larger than those planned today.”

“If the European Union collaborates with Canada to do economic damage to the United States, both will be subject to large-scale tariffs, much larger than currently planned, in order to protect the best friend either of these two countries has ever had! Trump posted.

The Republican president sees the tariffs as a tool to raise revenue to offset the tax cuts he has announced, while reviving the country’s declining industrial base.

In 2024 the US imported $220 billion worth of passenger cars and $474 billion worth of automotive goods. The largest suppliers were Mexico, Japan, South Korea, Canada and Germany.

Von der Leyen: “I deeply regret the US decision”

The European Union “deeply regrets” US President Donald Trump’s decision to move to impose 25% tariffs on European vehicles imported by his country, European Commission President Ursula von der Leyen said via X yesterday evening.

“I deeply regret the American decision,” von der Leyen said, adding that Brussels “will continue to seek solutions through negotiations” with Washington.

Mark Carney: US tariffs on cars an “attack” on Canada

US President Donald Trump’s decision to move to impose 25% customs duties on imported vehicles is a “direct attack” on Canadian workers, Canadian Prime Minister Mark Carney said yesterday (Wednesday).

“Customs tariffs against our auto industry are a direct attack on workers” in Canada, the new Liberal leader and prime minister told reporters, accusing Republican President Trump of “betraying” the free trade agreement between the two countries and Mexico.

Japan predicts ‘big impact’ – Ishiba: We will retaliate

Japan intends to adopt “appropriate measures” to retaliate against the additional customs duties on Japanese vehicles announced by the US government and will consider “all options”, Japanese Prime Minister Shigeru Ishiba warned.

“We need to think about appropriate measures after this announcement. Of course, we will consider all options,” Ishiba said, addressing members of the Japanese parliament. The auto industry produces roughly one-third of Japanese-made goods exported to the U.S.

The Japanese government warned against the “major impact” that U.S. President Donald Trump’s attack would have on U.S.-Japan trade and economic relations, as well as the global economy as a whole.

“We believe that these measures (…) and other more general restrictions on trade imposed by the US administration may have a great impact on economic relations between Japan and the US, as well as on the global economy and the multilateral trading system,” Japanese government spokesman Yoshimasa Hayashi told reporters.

The additional 25% customs duties on Japanese imported cars announced by Washington are a development “extremely regrettable,” the government spokesman noted shortly earlier at a briefing for accredited editors.

“It is extremely regrettable that the US administration announced these tariff measures (…) that include Japan,” he insisted.