Trump’s tariff threat on European cars escalates global trade tensions

The US president said he will impose a 20 per cent tariff on all EU car imports, which could broaden a trade war already sparked with China

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Published: 1:44am, 10 Apr 2026Updated: 4:41am, 10 Apr 2026

US President Donald Trump said he plans to impose a 20 per cent tariff on all cars imported from the European Union unless the trade bloc “soon” removes import duties and other barriers to US goods, escalating global trade tensions.

“Based on the Tariffs and Trade Barriers long placed on the US and it great companies and workers by the European Union, if these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the US. Build them here!” Trump wrote in a tweet on Friday.

Volkswagen, Daimler and BMW each fell in Frankfurt.

Trump’s tweet came hours after the EU imposed tariffs on about US$3.3 billion of American products in response to his barriers to imported aluminium and steel.

The European tariffs target politically resonant products, including 25 per cent duties on Harley-Davidson motorcycles, Levi Strauss & Co jeans and bourbon whiskey.

The EU measures cover a total of around 200 categories, also including various types of corn, rice, orange juice, cigarettes, cigars, T-shirts, cosmetics, boats and steel.

Trump’s salvo against the European car industry threatens to broaden a trade war that he has already sparked with China.

Trump’s tariff threat on European cars escalates global trade tensions

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The US president said he will impose a 20 per cent tariff on all EU car imports, which could broaden a trade war already sparked with China

The US president said he will impose a 20 per cent tariff on all EU car imports, which could broaden a trade war already sparked with China