WASHINGTON (NEXSTAR) – President Donald Trump’s announcement of new 25% tariffs on foreign car imports is escalating trade tensions with some of the U.S.’s biggest trading partners, including Canada and the European Union. The move has sent shockwaves through global markets and sparked backlash from both domestic lawmakers and international leaders.
The tariffs, set to take effect next week, have triggered a flurry of criticism. Democrats have expressed concerns about the economic impact, particularly the potential rise in car prices for American consumers.
“Buying a car could become 25% more expensive… people are already struggling to put food on the table,” said Rep. Suzanne Bonamici (D-Ore.), criticizing the tariffs during a press conference.
The backlash is not limited to U.S. lawmakers. Global leaders, including Canadian Prime Minister Mark Carney, have condemned the new trade barriers.
“This is a direct attack,” Carney said, signaling that Canada, which is a major supplier of auto parts to the U.S., is preparing a response.
The European Union, a key partner in U.S. auto imports, is also vowing to take action. Europe alone makes up nearly a quarter of U.S. car imports, with Germany being a major contributor. Olof Gill, spokesperson for the European Commission, emphasized Europe’s readiness to defend its economic interests.
“We are prepared to safeguard our economic interests,” Gill stated, as the EU weighs its response.
In a direct challenge, President Trump threatened further tariffs if Canada and the EU unite against the U.S. He warned in an online post that if the two nations take action to harm the U.S. economy, “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!”
The White House has defended the tariffs, calling them a necessary step to protect American jobs and manufacturing. White House Press Secretary Karoline Leavitt stated, “We’re ending the unfair trade practices that have been hollowing out our middle class for decades.”
The tariffs have found support from one of the largest auto unions in the U.S. The United Auto Workers (UAW), led by President Shawn Fain, has praised the move, with Fain calling it a step to rectify what he described as a “free trade disaster.”
Republicans, such as Rep. Barry Moore (R-Ala.), also back the tariffs, seeing them as an opportunity to bring more auto manufacturing jobs to the U.S.
“This is an opportunity to bring industry back to the U.S.,” Moore said. “We’ll see those manufacturers move here, bypassing the tariffs, putting American people to work in high-paying jobs.”
The White House estimates that the auto tariffs could generate up to $100 billion annually for the U.S. economy. As the trade war intensifies, the effects of these new tariffs are likely to be felt not only in car prices but across the global economy.