Canada, EU and Japan Consider Response to Trump’s Tariffs on Imported Cars

Canada and Japan are considering retaliatory measures after the White House on Wednesday announced 25 percent U.S. tariffs on imported cars and car parts, starting next month. The EU said it was assessing the latest tariff announcement.

Speaking to reporters at the Oval office, Trump said the tariffs will “continue to spur growth like you haven’t seen,” and that America’s automobile business “will flourish like it’s never flourished before.”

“We will defend our workers. Will defend our companies. Will defend our country and will defend it together,” Carney said. “This will hurt us, but through this period, by being together, we will emerge stronger.”

Asked when Canada would react, Carney said: “It will happen soon … we have options. We can introduce retaliatory tariffs.” He did not give details, noting that he needed to see the details of Trump’s executive order first.

Carney added that he has convened a meeting with the US-Canada cabinet on March 27 to discuss a response to the tariffs. He told reporters that it would also be “appropriate” to speak with Trump soon.

“As I have said before, tariffs are taxes – bad for businesses, worse for consumers equally in the US and the European Union,” von der Leyen said.

She said that Europe will assess Trump’s announcement, along with other measures it anticipates will be announced by the White House in the next few days.

“The EU will continue to seek negotiated solutions, while safeguarding its economic interests,” von der Leyen continued. “As a major trading power and a strong community of 27 Member States, we will jointly protect our workers, businesses and consumers across our European Union.”

“If the European Union works with Canada in order to do economic harm to the USA, 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!” Trump wrote on Truth Social on Thursday morning.

Japan Putting ‘All Options on the Table’

Japan also expressed regret over Trump’s decision, with Prime Minister Shigeru Ishiba telling reporters on Thursday that Tokyo will put “all options on the table” in dealing with Washington’s announcement.

“Japan is a country that is making the largest amount of investment to the United States, so we wonder if it makes sense for (Washington) to apply uniform tariffs to all countries. That is a point we’ve been making and will continue to do so,” Ishiba told parliament.

“We need to consider what’s best for Japan’s national interest. We’re putting all options on the table in considering the most effective response,” Ishiba concluded, without elaborating further.

The White House noted that 50 percent of the roughly 16 million cars purchased in the United States last year were imports. Of the other 8 million assembled in America and not imported, the average domestic content is conservatively estimated at only 50 percent and is likely closer to 40 percent, it said.

“Therefore, of the 16 million cars bought by Americans, only 25 percent of the vehicle content can be categorized as Made in America,” the fact sheet stated.

Trump is imposing the tariffs to protect the U.S. auto industry, “which is vital to national security and has been undermined by excessive imports threatening America’s domestic industrial base and supply chains,” the fact sheet stated.

The United Auto Workers union, which represents factory employees at the three big U.S. automakers, welcomed Trump’s announcement.

“These tariffs are a major step in the right direction for autoworkers and blue-collar communities across the country, and it is now on the automakers, from the Big Three to Volkswagen and beyond, to bring back good union jobs to the U.S.,” Fain concluded.

Reuters contributed to this report.